JSW Energy has initiated due diligence for acquiring Monnet Ispat’s 1,050 Mw power plant in Orissa.
On Thursday, JSW Energy announced signing of a non-binding memorandum of understanding with Monnet Ispatand Energy Limited for initiating a due diligence process for the possible acquisition of a majority stake in its 1,050 Mw power plant. The plant is being developed by group subsidiary Monnet Power Company Limited and deal would help the group to reduce its debt.
Along with JSW Energy, Adani Group too was interested in acquiring stake in the Monnet group’s power plant, according to media reports.
“We have signed a MoU and we will carry out detailed due diligence. Any decision to purchase it or not will be taken after completion of the process. We expect it to complete in 45-60 days. The power plant is under construction and will be complete in 18 months,” said Sanjay Sagar, CEO, JSW Energy.
JSW’s current energy capacity stands at around 3,140 Mw. Last September it signed a memorandum of understanding with Jaiprakash Power Ventures to acquire its 1,891-Mw power assets. The MOU covered three plants – the 300-Mw Baspa stage-II plant, the 1,091-Mw Karcham Wangtoo plant (both hydro power plants) and the 500-Mw Bina thermal power plant. The company expects to conclude the transaction by this month end.
Prasanta Patnaik