"JSW Energy Acquires Reliance Power's Wind Power Project for ₹132 Crore"

Reliance Power has finalized an agreement to sell its 45 MW wind power project located in Maharashtra to JSW Renewable Energy for ₹132 crore, as confirmed by an exchange filing.

JSW Renewable Energy, a subsidiary of JSW Neo Energy and a step-down entity of JSW Energy, is set to acquire the project.

Proceeds from the sale will be utilized by Reliance Power to retire its existing debt, according to sources. The company aims to achieve a debt-free status by the conclusion of the current fiscal year. As of March 31, 2023, Reliance Power had a total debt burden of ₹700 crore.

A member of the Anil Dhirubhai Ambani Group, Reliance Power has been diligently working towards debt settlement with its creditors. Over the past three months, it has successfully cleared its dues with three prominent banks: DBS Bank, ICICI Bank, and Axis Bank.

The wind power project situated in Vashpet recorded an income of ₹28.8 crore in FY23, boasting a net worth of ₹30.3 crore.

JSW Energy holds a substantial locked-in generation capacity of 12.5 GW, inclusive of 7.2 GW operational, 2.6 GW under construction across wind, thermal, and hydro segments, along with a pipeline of 2.7 GW capacity from SECI (Solar Tranche XIII and Wind Tranche XVI), SJVN, and GUVNL. Additionally, the company possesses 3.4 GWh of locked-in energy storage capacity via a battery energy storage system and hydro pumped storage project. It aims to scale up to a 20 GW generation capacity and 40 GWh of energy storage capacity by 2030.

The transaction is anticipated to conclude by May 21, 2024.

HBL