$1.6bn hydroelectric power plant deal cancelled in India

The Reliance Group has opted to pursue the purchase of three hydropower plants in India, citing regulatory issues for its decision.

It is the second time the Jaypee Group has failed in its bid to sell the HEP plants in what would be one of India’s largest power sector sales. The group had hoped to use the estimated $1.6bn deal to reduce its overall debt.

There was some positive developments on Thursday evening when Jaypee announced that it had signed a further “binding memorandum of understanding” with JSW Energy, another conglomerate, to sell the assets, which are located in northern India. Reliance had initially sought.
India HEP
While Reliance pointed to regulatory issues, Jaypee blamed disagreements over terms. “We discovered that certain commercial aspects of the deal that were not good from our point of view,” it said.

Analysts said the end of the deal illustrated the difficulties faced by companies trying to sell industrial assets in India at the present time, due to an intense regulatory environment.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...