Abu Dhabi National Energy Company (TAQA)-led consortium is set to purchase two hydro power projects totaling 1,391MW in India.
The consortium will buy the Baspa Stage II and Karcham Wangtoo power plants located in the northern state of Himachal Pradesh, from Jaypee Group’s subsidiary Jaiprakash Power Ventures.
As per the proposed deal, TAQA will be responsible for controlling the operations and management of both the plants.
The consortium is said to acquire the projects with an investment of approximately Rs38.2bn ($616m) of which 51% investment will come from TAQA.
The consortium is also set to purchase the assets’ non-recourse project debt.
Both the power plants, which are located in Kinnaur district within two kilometres of each other and share support facilities, use run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a reservoir.
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By GlobalDataAfter the transaction, TAQA’s gross operational power generation capacity in India will reach to 1,741MW.
TAQA executive officer and global power & water head Frank Perez said, "India’s economic growth depends on having ample and reliable energy supply. TAQA is pleased to add these two high quality hydro power assets to our growing India business and to support India’s economic growth."
Subject to regulatory and third party approvals, the transaction would be closed in 2014.
