JSW Energy In Talks To Acquire GMR Kamalanga
JSW Energy Limited (JSW) has entered into talks with GMR Energy Limited (GEL), a subsidiary of GMR Infrastructure Limited, regarding the acquisition of its entire stake in GMR Kamalanga Energy Limited, a company that owns and operates a 1,050-MW thermal power plant in Odisha
GMR Kamalanga has fuel linkages with Mahanadi Coal Fields, a subsidiary of Coal India Ltd. The company also has a long-term power purchase agreement with Grid Corporation of Odisha.
As per information submitted in the stock exchanges, both GEL and JSW intend to conclude the negotiation in an expeditious manner and reach an agreement as soon as possible. This news comes at a time when the GMR Group is trying to reduce its debt by monetising its assets in road and power sectors. The infrastructure giant has adopted several divestment initiatives, in a bid to free up equity to invest in new projects.
GMR has recently secured the approval of Competition Commission of India to divest stake in its airports arm to a Tata Group entity, GiC and others, in a deal which could be valued at about ₹8,000 crores.
The company is also in the process of restructuring its overall business, leading to vertical division of the airports business and other divisions. The move may lead to a separate listing of the airports business.