By Bizodisha Bureau, October 7, 2019: JSW Energy has struck a deal with GMR Infrastructure for taking over GMR’s power plant at Kamalanga village in Dhenkanal district in Odisha at an undisclosed amount.

In a joint statement to the Exchanges on Monday, both the companies revealed that they have struck a deal for 1050 MW (3X350 MW) operational coal based power plant worth of more than Rs 6,500 crore. The company has three power purchase agreements (PPAs) with Grid Corporation of Odisha (GRIDCo), Haryana Utilities, and Bihar state utility.

However, the companies did not disclose the valuation for the asset. “We wish to inform you that JSW Energy has entered into exclusive discussions with GMR Energy for potential acquisition of its subsidiary, GMR Kamalanga Energy,” JSW said in its statement to the BSE. “Both parties intend to conclude these discussions in an expeditious manner,” the statement said.

As on March 31, 2019, GMR Energy held 87.42 per cent stake in GKEL, while 10.21 per cent was held by India Infrastructure Fund (IIF), a fund managed by IDFC Project Equity Company and 2.37 per cent stake by IDFC, according to CARE Ratings. For June 2019, the power plant was operating a 76 per cent utilisation level.