JSW Energy and GMR Infrastructure have entered into exclusive talks for the sale of GMR Infrastructure’s Odisha power plant. The companies did not disclose the valuation for the asset.
The subsidiary of GMR Infrastructure, GMR Kamalanga Energy, operates 1,050 MW power plant in Odisha. If concluded, JSW Energy will make a power acquisition after four years. In 2015, JSW Energy bought two hydro power assets from Jaiprakash Power Ventures for Rs 9,700 crore.
JSW Energy is looking for 10 GW capacity in the next three-five years from the current 4.5 GW, through a mix of organic and inorganic growth. Post the sale of the Odisha plant, GMR Energy will operate a 600-MW thermal power plant in Warora, two gas-based projects (Vemagiri and Kakinada), and one solar power plant in Gujarat.
The power plant in Odisha is estimated to cost Rs 6,519 crore. GMR Kamalanga Energy has three power purchase agreements (PPAs) with Grid Corporation of Odisha (GRIDCO), Haryana Utilities, and Bihar state utility.