JSW Energy, spearheaded by Sajjan Jindal, has set its sights on bolstering its renewable energy portfolio through a strategic move to acquire wind power assets from Anil Ambani-led Reliance Power.
Sources privy to the negotiations reveal that JSW Energy has presented a binding offer to Reliance Power, signalling a potential acquisition deal valued at ₹130-135 crore. According to insiders familiar with the matter, both companies are currently engaged in advanced discussions, with the transaction anticipated to reach fruition by the end of this month. The proposed acquisition pertains to a 45-megawatt wind power project located in Vashpet, Maharashtra, which commenced operations in 2013. Notably, the project has an existing power purchase agreement with Adani Electricity for offtake, adding significant value to the deal. While JSW Energy and Reliance Power have refrained from offering official comments on the development, sources indicate that the proceeds from the transaction will be directed towards the repayment of bank debt. The wind power plant, with a capacity of 45 megawatts, was previously mortgaged with DBS Bank against a loan amounting to ₹110 crore.
This strategic manoeuvre underscores JSW Energy’s commitment to expanding its renewable energy footprint and leveraging opportunities in the evolving energy landscape. By augmenting its portfolio with established wind power assets, the company aims to bolster its renewable energy generation capabilities and capitalise on the growing demand for sustainable energy solutions. The proposed acquisition aligns with JSW Energy’s overarching strategy to diversify its energy portfolio and embrace cleaner and greener sources of power generation. With a focus on sustainability and environmental stewardship, the company is poised to contribute to India’s renewable energy transition while driving value for its stakeholders.
As the renewable energy sector continues to gather momentum, strategic acquisitions and partnerships play a pivotal role in shaping the industry’s trajectory. JSW Energy’s pursuit of Reliance Power’s wind power projects underscore the company’s strategic foresight and underscores its commitment to sustainable growth in the evolving energy landscape. In a stock exchange notice on Thursday, Reliance Power said, “The company has settled the entire obligations with respect to its borrowings from DBS Bank in accordance with the settlement agreement dated January 05, 2024 as a result the assets of 45 MW Wind Power Project are free from the encumbrance.”The company settled ₹400 crore loans from ICICI Bank, Axis Bank and DSB Bank, as reported by ET on March 20. The three lenders jointly recovered close to 30-35% of their principal loans. In April 2023, it settled JC Flowers ARC and Canara Bank loans, according to exchange disclosures. Reliance Power’s total financial indebtedness stood at ₹765 crore as of December 31, 2023. Although most debt is settled, it owes some lenders. As per the company’s FY23 annual report, Bank of Maharashtra, Punjab National Bank, State Bank of India, US Exim, Asian Development Bank are among the other lenders.
