JSW Energy Acquires Bankrupt Ind-Barath Energy For $127 Mln

JSW Energy Ltd. said it acquired the bankrupt Ind-Barath Energy (Utkal) Ltd. for 1,048 crore rupees ($127 million) under the insolvency resolution process.

JSW Energy has paid the amount and now holds a 95% stake in Ind-Barath Energy, while its secured financial creditors collectively own the balance 5% stake as per the terms of the resolution plan, the Indian power producer said in a stock exchange announcement.

Ind-Barath Energy, which owns a 700-megawatt (350-MW x 2 units) thermal power plant located at Jharsuguda district of Odisha state, has now become JSW Energy’s subsidiary, it added.

JSW Energy said it will infuse additional capital in Ind-Barath Energy to compete its non-operational power plant project. The subsidiary’s Unit-I was commissioned in 2016, but became non-operational due to financial stress at the company, while Unit-II is yet to be commissioned, it noted.

The project is likely to be completely operational in the next 24 months.

JSW Energy Joint Managing Director & CEO Prashant Jain said the acquisition would help the company in achieving its capacity growth target of 10 gigawatts by FY25, well ahead of time.

(Note: $1 = 82.8144 Indian rupees)