UAE's TAQA not to buy Jaypee's hydro power units.

United Arab Emirates' Abu Dhabi National Energy Co, also known as TAQA, has pulled out of a $1.6-billion (Rs. 9,625-crore) deal to purchase two hydro power plants of Jaiprakash Power Ventures, part of the Delhi-based Jaypee Group.

Following this decision, TAQA will have to pay a penalty of $9 million to Jaiprakash Power, a senior official at the Jaypee Group said.

The two plants in Himachal Pradesh - 300-MW Bapsa II and 1,000-MW Karcham Wangtoo - would now look for buyers at a better valuation, the official added. At the time of the announcement of the deal earlier this year, the valuation was Rs. 10,500 crore.

HBL