JSW Energy signed Transfer agreement deal with Reliance Power Limited

by Psu Connect
Date: 23-03-24

JSW Renewable Energy (Coated) Limited has signed an Execution Business Transfer Agreement for purchasing the 45 MW Vashpet Wind Project (Business Undertaking) of Reliance Power Limited as a going concern on a slump sale basis.

JSW Energy signed Transfer agreement deal with Reliance Power Limited

The company JSW Renewable Energy (Coated) Limited, a wholly-owned subsidiary of JSW Neo Energy Limited and a step-down subsidiary of the Company, has confirmed that it has signed a Business Transfer Agreement with Reliance Power Limited for the purchase of the 45 MW Vashpet Wind Project (Business Undertaking) as a going concern on a slump sale basis. The transaction is subject to receipt of the necessary regulatory and other customary approvals.

The Company has set a target to reach 20 GW capacity before FY 2030 and to become a carbon-neutral company by FY 2050. The renewable asset under this transaction will be purchased by JSW Renewable Energy (Coated) Limited, a wholly-owned subsidiary of JSW Neo Energy Limited and a step-down subsidiary of the Company. The transaction would help the Company to achieve its renewable-led capacity growth target of 20 GW before FY 2030.

Some of the major approvals are required from the Maharashtra Energy Development Agency along with the existing lenders of Reliance Power Limited and the power off-taker.

The transaction envisages a Long Stop Date of 60 days and is contingent upon fulfillment of the Conditions Precedent set out in the Business Transfer Agreement. The Purchase consideration for the transaction is Rs. 132 crores adjusted for the Net Working Capital as of the closing date.