JSW Energy has officially terminated the acquisition of GMR’s Odisha Kamalanga Power plant due to COVID-19 related uncertainty. The transaction to acquire the entire stake in Rs 5,321 crore has been on hold for the last two months.
JSW Energy stated in May that it had entered into a share purchase agreement with GMR Energy to acquire its subsidiary, GMR Kamalanga Energy (GKEL), which owns and operates a 1050 MW (3 x 350 MW) coal-fired thermal power plant in Dhenkanal, Kamalanga District, Odisha.
JSW Energy has 90-day time to conduct the share purchase agreement, and it will expire last week in August. The purchase was part of the company’s plan for power sector growth and consolidation.
Post-acquisition, JSW Group company’s total installed power generation capacity was to be increased to 5,609 MW. It was mainly to extend the company’s presence in the country’s eastern area, and further diversify its fuel mix and off-take arrangements. Since October 2019, the two parties had been in talks.
As per sources to the continued unpredictability the board took the decision to terminate the contract. JSW Group is already on a cost management and cash-conservation drive to make the businesses resilient to eventualities.
