JSW Energy Limited has completed the acquisition of Ind-Barath Energy (Utkal) Limited (Ind-Barath) pursuant to the Resolution Plan (RP) submitted under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016 and approved by the Committee of Creditors (CoC) and National Company Law Tribunal.
The RP has now been implemented, consequently Ind-Barath has become a subsidiary of the company, a statement said.
Ind-Barath owns a 700 MW (350MW x 2 units) thermal power plant located at Jharsuguda district of Odisha, of which Unit-I had been commissioned in 2016 but is non-operational since then due to financial stress at Ind-Barath while Unit-II is yet to be commissioned. The Project is expected to be completely operational within the next 24 months, the statement said.
The acquisition is valued at an enterprise value of ₹1,048 Crores. The company will infuse additional capital towards expenditure required for completion of the balance work. Further the secured financial creditors of the project will be able to participate in the equity upside with 5% equity shares of Ind-Barath as per the terms of the RP. The company shall hold 95% of equity shares of Ind-Barath, according to the statement.
Prashant Jain, Joint Managing Director and CEO of JSW Energy, said: “We are pleased to acquire Ind-Barath which marks our first major investment in the state of Odisha. We aim to complete the construction and operationalise both the units in 24- month timeframe. The acquisition would help the Company in achieving its capacity growth target of 10 GW by FY 2025, well ahead of time. Ind-Barath’s strategic location is an added advantage which will expand the company’s presence in the Eastern Region and further diversify fuel mix and offtake arrangements.”
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