Reliance Power to buy JP group hydro assets

Mumbai, July 28: Reliance Power has signed an agreement to acquire the entire 1,800 MW hydroelectricity portfolio of the Jaiprakash Group for over Rs 10,000 crore to register India's biggest deal in the infrastructure sector other than telecom.

"Reliance Power signs exclusive Memorandum of Understanding to acquire 100 percent of entire hydro power portfolio of Jaiprakash Power Ventures," the company said Monday in a filing to the Bombay Stock Exchange (BSE).

The deal has been signed by Reliance CleanGen (RCL), a 100 percent subsidiary of Reliance Power and Jaiprakash Power Ventures (JPVL), a subsidiary of Jaiprakash Associates (JAL), the company said.

"JPVL's hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, the largest in the private sector in India, and with an asset base of over Rs.10,000 crore. The portfolio comprises three plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity," Reliance Power said.

The acquisition would make Reliance Power one of India's largest private power companies with 7,800 MW operating capacity by end of the current fiscal.

IANS