Reliance Power to buy Jaypee s hydropower projects

 Reliance CleanGen, a wholly-owned subsidiary of Anil Ambani-controlled Reliance Power (R-Power), has signed a deal to buy entire hydropower portfolio of Jaiprakash Power Ventures Ltd (JPVL).
“Reliance CleanGen has signed a memorandum of understanding with JVPL for acquisition of its entire hydroelectric power portfolio, ” R-Power informed BSE issuing a statement.
JPVL is a subsidiary of Jaiprakash Associates Ltd (JAL), the flagship company of Jaypee Group. “JAL intends to utilise the entire proceeds of the proposed transaction to reduce its outstanding debt, and thereby deleverage its consolidated balance sheet,” the statement said.
JPVL s hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, is the largest in the private sector in India, and with an asset base of over Rs 10,000 crore. The portfolio comprises of the 3 plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir.
SBI Capital Markets was the advisor for this transaction.

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