Jindal Brothers on the verge of closing a deal, JSW expects to increase its power generation capacity

Jindal Steel & Power company has a total net debt of 460 billion rupees at the end of December last year, which is almost eight times the company’s current market capitalization. The company has been in frequent discussions with the lenders to postpone repayments due to the “cash flow mismatches.” The Dollar Business Bureau

Ravi Uppal, the Chief Executive of Jindal Steel said that they are negotiating a deal, but refused to give more details about it

JSW energy’s Sajjan Jindal is on the verge of closing a deal of about $782 million to buy a coal-fired power plant of 1,000 megawatt(MW) from Jindal Steel & Power, owned by his brother. An announcement is expected about the deal on Wednesday. However, a delay for another week is also expected as the details, including the price are yet to be established. Ravi Uppal, Chief Executive of Jindal Steel said that they are negotiating a deal, but refused to divulge any more details about it. Jindal Steel & Power company has a total net debt of 460 billion rupees by the end of December last year, which was almost eight times the company’s current market capitalization. The company has been in frequent discussions with its lenders to postpone repayments due to the “cash flow mismatches.” Both the companies had developed animosity when bidding to buy foreign assets. But, now Jindal Steel is faltering after the Supreme Court cancelled its license for coal mining. It also had a bad time when the already weak commodities market hit the margins. The deal of this power plant would help JSW’s efforts to triple its generation of power capacity to about 12,000 MW in the next decade. Jindal Steel and Power was the first private company to set up an independent power plant, where it engaged the first of the four 250 MW units in Raigarh, Chhattisgarh in 2007.

March 22, 2016 | 04:00pm IST

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The Dollar Business Bureau - Mar 22, 2016 10:22 IST

Jindal Brothers on the verge of closing a deal, JSW expects to increase its power generation capacity

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