JPVL pre-pays Rs 299.51 crore debt using proceeds of Jaypee Powergrid stake sale

Jaiprakash Power Ventures Ltd (JPVL) said on April 1 that it has pre-paid debt worth Rs 299.51 crore. The company, earlier this week, pre-paid its long-term loans/ working capital loans amounting to Rs 299.51 crore, according to a BSE filing.

The pre-payments were made from proceeds of the sale of the company’s 74 percent stake in Jaypee Powergrid Ltd. This is in line with the company’s endeavour to continue to reduce its debt, the filing added.

The Power Grid Corporation of India had signed a Share Purchase Agreement with Jaiprakash Power Ventures Limited on March 19 to acquire 74 percent shareholding of JVPL in Jaypee PowerGrid Limited (JPL) for Rs 351.64 crores.

The board of Power Grid Corporation of India had approved the acquisition on February 11, 2021.

After the acquisition, JPL became a wholly owned subsidiary of the Power Grid Corp Ltd.

JPL-JV has developed a 214 km long EHV power transmission project to evacuate power from Karcham-Wangtoo project in Himachal Pradesh.

The power transmitted is meant for distribution and consumption in states of Himachal Pradesh, Haryana, Punjab, Uttar Pradesh, and Rajasthan.

PGCI was established by the Centre as the central transmission utility of India. As of December 31, 2020, the Government of India owned 51.34 percent stake in the company.