A consortium led by Abu Dhabi National Energy Co (TAQA) has agreed to buy 2 Indian hydroelectric power plants from Jaiprakash Power Ventures in a deal worth about $1.6 billion. The group will spend $616 million on equity in the plants, and in addition take over their non-recourse project debt, bringing the total ent
A consortium led by Abu Dhabi National Energy Co (TAQA) has agreed to buy 2 Indian hydroelectric power plants from Jaiprakash Power Ventures in a deal worth about $1.6 billion.
The group will spend $616 million on equity in the plants, and in addition take over their non-recourse project debt, bringing the total enterprise value to around $1.6 billion.
State-run TAQA, with 51% of the consortium, will control the operations and management of both plants under the deal. PSP Investments, one of Canada's largest institutional investors, will own 39% and an infrastructure fund run by India's IDFC Alternatives will hold 10%.
The two plants, located close to each other in the northern state of Himachal Pradesh, have a combined generating capacity of 1,391 megawatts, and are near another Indian hydroelectric plant in which TAQA acquired a stake last year.
Along with a lignite power plant owned by TAQA, the latest deal will bring TAQA's combined generating capacity in India to 1,741 MW. The deal, which needs regulatory and third-party approvals, is expected to close in 2014, TAQA said.