JSW Energy to acquire Jindal Steel and Power’s Chhattisgarh power plant

JSW Energy has entered into a definitive agreement with Jindal Steel and Power Limited (JSPL) to acquire the latter’s 1,000 MW Raigarh coal-based power plant in Chhattisgarh. As per the agreement, the cost of the deal is linked to an initial enterprise value of Rs 40 billion, which may be increased to Rs 65 billion in case the pre-decided fuel supply and power offtake arrangements are fulfilled. JSW will extend an interest-bearing advance of Rs 5 billion to JSPL. The deadline for concluding the deal is June 30, 2018.