Abu Dhabi Water & Electric Authority (ADWEA), apparently through its separately listed business arm Abu Dhabi National Energy Company (TAQA), is likely to acquire Jaiprakash Power Ventures’s two operating hydro-power projects in Himachal Pradesh, India for a consideration of around $1.84–$2bn.
Both parties are in advanced stage of negotiations for technical and financial aspects for the acquisition of 300MW Baspa II and 1,000MW Karcham Wangtoo run-of-the-river projects on the Sutlej River and are likely to reach a formal agreement shortly.
Earlier in November 1991, Jaypee signed a memorandum of understanding with the state government for Baspa II and secured approval in October 1992. The project, which is comprised of features three pelton turbines of 100MW each, was fully commissioned in June 2003.
The Karcham-Wangtoo consists of four units of 250 MW each on the river Sutlej, in Kinnaur district of the state, and produces estimated annual electricity of 4,358 million units.
Speaking on the company’s power assets divestment plans, Jaiprakash Power Ventures managing director and CFO Suren Jain told The Economic Times that the company is currently considering various options to reduce its debt and is open to all ideas.