New Delhi: Reliance Power Ltd (R-Power) on Wednesday called off its discussions with Jaiprakash Power Ventures Ltd (JPVL) to buy three hydropower projects citing regulatory uncertainties.
“Due to prevailing regulatory uncertainties, and tariff issues, which impact valuations, Reliance Power and Jaiprakash Power Ventures Ltd have terminated discussions regarding Reliance Power's acquisition of JPVL's hydro portfolio of three projects, with aggregate capacity of 1,791MWs (megawatts),” R-Power said in a statement.
R-Power had on July 27 agreed to buy the hydropower assets of JPVL for an undisclosed sum, just days after a consortium led by Abu Dhabi National Energy Co. PJSC, or Taqa, called off a Rs 9,689 crore plan to buy two of JPVL's hydropower plants.
JPVL has an operational hydropower capacity of nearly 1,800MW, the largest outside government control in India, and an asset base of over Rs.10,000 crore. The portfolio comprises three plants—Baspa Stage II (300MW) and Karcham Wangtoo (1,091MW) in Himachal Pradesh, and Vishnuprayag (400MW) in Uttarakhand.
