JSW Energy to acquire Jindal Steel & Power's unit for Rs 6500 crore

| Wednesday, May 4, 2016 - 09:49
First Published |
JSW holds the fort for JSPL at 6500 cr

JSW holds the fort for JSPL at 6500 cr

Delhi: JSW Energy has announced its plans to acquire Jindal Steel & Power's (JSPL) Chhattisgarh power plant for Rs 6,500 crore. The Naveen Jindal-promoted JSPL has been looking to sell its assets as part of monetisation plans to generate cash flows.
The deal is likely to be completed by mid-2018. This would, according to the reports, help JSPL meet its liabilities while JSW will gain a foothold in coal-rich eastern India through the acquisition of this power plant in Chhattisgarh. The deal is also deemed to  be a boon for top lender State Bank of India (SBI) which has been trying to broker an agreement between the two companies.
The Jindal brothers had earlier competed to buy foreign assets, but Jindal Steel has now been struggling after SC had cancelled its coal mining licences and a weak commodity market hit the margins.
After the acquisition, JSW Energy will have a total power generation capacity of 5,531 megawatts.

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