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A consortium led by Abu Dhabi state/private energy firm TAQA is pulling out of a $1.6bn deal to buy two Indian hydropower plants.
India’s Jaypee Group, which was to have sold the two plants, in a 24 July stock exchange filing, said that TAQA attributed the collapse of the deal to a change in its business strategy and priorities.
TAQA held 51% of the consortium, with Canada’s Public Sector Pension Investment Boards taking 39% and Indian private equity firm IDFC Alternatives 10%.
Jaypee was looking to sell the two plants, which have a combined capacity of 1.39GW, to reduce its debts. Announcing the original deal, TAQA said it aimed to raise its gross operational power capacity in India to 1.74GW, including a 250MW lignite-fired plant and a 100MW hydro scheme. TAQA was at the time considering expanding the lignite-fired plant to 500MW capacity. Since TAQA’s exit, Jaypee has agreed to sell its entire 1.8GW of hydro capacity to India’s Reliance.
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