As uncertainties loom over the solar power sector, mainly on the policy front, the Sajjan Jindal-led JSW Energy has put its ambitious expansions plans in the segment on the backburner.
Sajjan Jindal-led JSW Energy is looking to acquire stressed hydro projects to increase its renewable energy portfolio, along with reviving its 240-megawatt (MW) Kuther hydro power project in the state.
Billionaire Sajjan Jindal’s JSW Energy is no longer interested in acquiring bankrupt Monnet Power, a senior company executive told CNBC-TV18 on Thursday. Monnet Power, which owns and operates coal fired thermal power plant in Odishs
Tata Power and ICICI Ventures-backed Resurgent Power, Adani Power, JSW Energy and Vedanta Plc are eyeing a large chunk of stressed power assets at half of the projects’ cost as lenders rush to close deals ahead of August 27 deadline.
Banks, led by State Bank of India, are close to finalising resolution plans for at least half a dozen stressed power companies involving total loans of ₹50,000 crore, which could result in banks taking more than 50% haircut, bank officials said.
Banks are set to finalise deals for about a dozen stressed power projects with more than 13,000 mw capacity within the next 10 days even if they have to take steep haircut, people familiar with the development said.
Efforts from state governments such as those of Maharashtra and Uttar Pradesh to develop floating solar plants might hit the financial-viability hurdle. Industry officials said that non-availability of the primary float structure in India make these projects an expensive option.
Sajjan Jindal-promoted JSW Energy has expressed interest in bidding for stressed assets of Bhushan Energy, the third among the Singhal family’s debt-laden companies that have been admitted in the bankruptcy court.
Merchant power rates have shot up 50 per cent in the past week to over Rs 6 per unit. While this augurs well for most of the power-generating companies, JSW Energy will be the biggest beneficiary amongst the large power generators since it sells over 25 per cent of the capacity through the merchant route.
JSW Energy, an arm of the JSW Group in India, today posed a net loss of Rs 480.05 crore for the quarter ended March 2018 owing to higher fuel cost and provisions against outstanding payments.