Jindal India Thermal Power Ltd (JITPL), a part of the BC Jindal group, is in talks with prospective buyers to sell its 1,200MW thermal power plant in Odisha, three people familiar with the development said.
The plant in Odisha’s Angul district has so far received competing offers from Singapore’s SembCorp, Adani Power and JSW Energy, one of the three people cited above said, requesting anonymity.
“The sell side mandate was given to EY around three months ago following which SembCorp has made an upfront cash offer of close to Rs1,600 crore for the equity component of the project,” said the person cited above.
“JSW and Adani have offered a higher price of more than Rs2,000 crore, but the offer involves an upfront cash payment of around Rs500 crore to Rs600 crore towards equity and the remaining upon fulfilment of certain conditions linked to singing of power purchase agreements and coal linkages,” the person said.
“JSW is keen to replicate the same structure it followed while buying JSPL’s (Naveen Jindal-led Jindal Steel and Power Ltd’s) 1,000MW thermal unit this year, where it paid Rs500 crore cash advance while tying up the rest of the payment to pre-defined conditions regarding fuel security and power offtake,” the person added.
Emails sent to Adani group, SembCorp and EY did not elicit any response at the time of going to press.