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Jaiprakash Power approves sale of Bina power plant to JSW Energy

Jaiprakash Power Ventures Ltd approved the sale of its Bina Thermal Power Plant to JSW Energy Ltd on Monday, the company said in a statement to BSE.The sale to JSW Energy is to be executed through sale of shareholding in a special purpose acquisition entity called Bina Power Supply Ltd (BPSL).The Jaiprakash Power board agreed on Monday to transfer the Bina Thermal power plant along with all of its assets, liabilities, contracts and deeds to BPSL.“The consideration of sale of entire securities of BPSL (held or to be held by the company) to be received from JSW Energy is linked to a base enterprise value of as on 1 September 2015 of Rs.2,700 crore, subject to mutually agreed adjustments,” Jaiprakash Power said.

In the last six months (January-June) the growth in electricity demand has been more than 9% in comparison to same period last year,” said Debasish Mishra, a partner at Deloitte Touché Tohmatsu India LLP. “This may be the right time for players with stronger balance sheets to acquire generation assets from debt-ridden corporates at attractive valuation.”On 8 September, JSW Energy signed a binding memorandum of understanding with Jaiprakash Power Ventures to buy its 500 megawatts (MW) Bina power plant. On Monday, Jaiprakash Power reported a standalone net loss of Rs.196.16 crore in the June quarter against