JSW Energy has inked a business transfer agreement with JSW Cement for the sale of 18 megawatt (MW) thermal power plant at Salboni, in West Bengal for Rs 95.67 crore.
Earlier, the board of JSW Energy had approved the sale of 18 MW thermal power plant at Salboni to JSW Cement Ltd on a going concern basis, subject to necessary approvals.
“The Business Transfer Agreement has been signed today with JSW Cement Ltd,” the company said in late evening regulatory filing on March 8.
It stated that the sale is for a consideration of Rs 95.67 crore.
The company also said that the transaction is a related-party transaction and is carried out at arm’s length based on a valuation by an independent registered valuer.
Considering the lower power demand of its Salboni Cement Unit, JSW Cement Ltd intends to optimise the job work charges per unit. Hence, the plant is being sold to JSW Cement on a slump sale basis, the filing added.
