PGCIL to acquire Jaypee Powergrid for $48 M
India, Mumbai: Power Grid Corporation of India (PGCIL) has signed an agreement to acquire a share in Jaypee Powergrid Ltd (JPL), for ca. $48 M (Rs.350 crore).
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India, Mumbai: Power Grid Corporation of India (PGCIL) has signed an agreement to acquire a share in Jaypee Powergrid Ltd (JPL), for ca. $48 M (Rs.350 crore).
PGCIL said that it has signed the sales purchase agreement with Jaiprakash Power Ventures Ltd (JPVL) to acquire 74 % stake in JPL owned by JPVL, for an aggregate consideration of $48.6 M (Rs.351.65 crore). The filing noted that this was the “closing date payment” and will be subject to adjustment in accordance with relevant clauses in the SPA.
On completion of this transaction, Jaypee Powergrid Ltd will become a wholly owned subsidiary of PGCIL.
It may be recalled that on 12 February 2021, the board of directors of PGCIL approved the acquisition of the entire equity 74 % stake of JPVL held in Jaypee Powergrid Ltd. PGCIL had earlier obtained the concurrence of Niti Aayog for this acquisition.
JPL was incorporated on 5 October 2006 as a joint venture between JVPL (equity: 74 %) and PGCIL (equity: 26 %). It was formed to implement specific power transmission infrastructure associated with Jaypee Group’s 1,000 MW Karcham-Wangtoo hydropower project in Himachal Pradesh. The JPL started commercial operations on 1 April 2012 and recorded a sales turnover of around $22.1 M (Rs.160 crore) in FY20.
The Karcham-Wangtoo hydropower, located on river Sutlej in Himachal Pradesh has been in operation since September 2011. It was commissioned by Jaypee Group but was later acquired by JSW Energy.
Way back in March 2006, PGCIL announced that it was willing to form joint ventures with IPPs (independent power producers) for setting up transmission infrastructure associated with their power generation plants. These IPPs were Essar Power, Torrent Power, Teesta Urja, Jaypee Group and ONGC Tripura Power.
Some of the joint ventures were subsequently formed. As of 31 March 2019, PGCIL had three such joint ventures in operation—Torrent Powergrid Ltd, Jaypee Powergrid Ltd (now proposed to be taken over) and Teestavalley Power Transmission Ltd.
Source: T&D India