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Jindal Steel to sell plant to JSW Energy for Rs.6,500 crore

NEW DELHI: Sajjan Jindal's JSW Energy will acquire a 1,000 mw power plant in Chhattisgarh from Jindal SteelBSE -0.60 % & Power, controlled by younger brother Naveen. There had been speculation last week that the deal may have run into hurdles after a planned press conference was cancelled. "The enterprise value will be Rs 6,500 crore plus the value of net current assets as on closing date," said the binding agreement announced on Wednesday.

"The valuation may vary based upon the achievement of power purchase agreement as prescribed in the agreement subject to a minimum of Rs 4,000 crore plus the value of net current asset as on closing date," according to the binding agreement.