Jaypee Group selling two hydro-power assets to UAE utility Taqa, IDFC Alternatives’ consortium for $1.6B

The Aurum Perspective – The answer to deleverage India’s infrastructure sector, specifically energy, lies with investments from global utility companies and mega institutional investors.

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The equity value of the transaction is around $616 million with the rest being debt.

Jaiprakash Power Ventures Ltd (JPVL), a subsidiary of Indian infrastructure conglomerate Jaypee Group, is hiving off two hydro-power plants as a part of its group asset-disposal plan to a consortium of investors, including Abu Dhabi National Energy which operates under the banner of Taqa, Canadian institutional investor Indo-Infra Inc and IDFC Alternatives.

The two plants are Baspa Stage II and Karcham Wangtoo in the northern Himachal Pradesh.

“The board of directors in its meeting held on March 1, 2013, accepted the recommendations for the divestment of 300 MW hydro-electric plant and 1,091 MW Karcham Wangtoo hydroelectric plant. The divestment is proposed to be by way of hiving off the two plants to two separate wholly owned subsidiaries through a scheme of arrangement to be sanctioned by the high court with eventual transfer of ownership of the said subsidiaries to the purchasers viz consortium led by Taqa India Power Ventures Pvt Ltd, Indo-Infra Inc and India Infrastructure Fund-II,” the company said.

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