Sajjan Jindal, the billionaire industrialist who leads the JSW Energy has terminated the business agreement which was signed three years ago with Naveen Jindal, who leads the Jindal Steel and Power, to obtain its 1,000 megawatt thermal power plant located in Chhattisgarh.
JSW energy were to obtain the 1,000MW (4×250 MW) thermal power plant that was located in Raigarh district for Rs 6,500 crore on May 3rd, 2016. JSW was expected to pay Rs 4,000 crore, leaving aside the net current assets, and the remaining Rs 2,500 crore was to be paid once the deal was completed. Since the companies failed to finalize on the deal by its deadline which was initially of June 30, 2018, it got extended by a year.
According to the current reports the debts of Jindal Steel and Power is approximately Rs 39,000 crore and this deal would have been beneficial in clearing those debts. The company has been facing losses due to the rejection of coal mine lease by Supreme Court and also the weak global commodity prices.
JSW Energy generates 4,541 MW of power per year of which 3140 MW is thermal, 1,391 MW is hydropower and 10 MW is solar.