Reliance CleanGen Ltd, a subsidiary of Reliance Power of the Anil Ambani group has emerged winner in taking over JayPee Group’s Jaiprakash Power Ventures, which has around 1800 megawatt hydal power production through its three hydal plants in Himachal Pradesh and Uttarakhand. The deal is believed to be valued at 12,300 crores. much higher than the projected value of 10,500 crores. JSW, Adani group and Abu Dhabi Energy Company – Taqa, with drew from the competition.
The 1800 megawatt hydal power plants under the deal are situated at Kinnaur, Himachal Pradesh – 300 MW; Vishnu Prayagan plant at Chamoli, Uttarahand – 400 MW, and another 1091 MW plant at Karcham Wangtoo plant at HP again. These hydal plants are all using the run-of-the-river technology that converts natural water flow into electricity, doing away with the need to build a reservoir to generate strong enough flow.
Reliance Power already has power generation capacity of 5000 megawatt in Arunachal Pradesh, HP and Uttarakhand. With this acquisition, Anil’s Reliance becomes the biggest hydroelectricity producer in the private sector.
JP Power has gained about 9% and Reliance Power over 3% on the news this morning. The deal is stipulated to be completed in six months time.