Sajjan Jindal-led JSW Energy Ltd has terminated a deal it had signed three years ago to acquire a 1,000-megawatt thermal power plant in Chhattisgarh from Jindal Steel & Power Ltd.
JSW had, in May 2016, agreed to buy the thermal power plant in Chhattisgarh’s Raigarh from Jindal Steel for up to Rs 6,500 crore ($975 million) including debt.
The transaction was to be completed by the end of June 2018. But the companies couldn’t complete the deal by then and so extended the deadline to June 30, 2019.
The new deadline has now lapsed without the companies completing the stipulated conditions precedent, and so the proposed acquisition stands terminated, JSW said in a stock-exchange filing.
The acquisition would have helped JSW increase its power generation capacity and enable Jindal Steel, controlled by Sajjan’s brother Naveen Jindal, to cut debt.
The power plant, at Raigarh in the mineral-rich Chhattisgarh, has four units of 250 MW each that started generating electricity between December 2007 and September 2008.