Jaypee announces amalgamation of three group entities
By IANSMonday, February 14, 2011
NEW DELHI - The diversified $3.25 billion Jaypee Group Monday announced the amalgamation of two of its group companies into an existing holding company to consolidate the power generation business.
“Jaypee Karcham Hydro Corp and Bina Power Supply Co will be merged with Jaiprakash Power Ventures which is the designated power vehicle of our group,” Manoj Gaur, executive chairman of the Jaypee Group said at a press conference here.
“It was considered prudent to restructure the power business of the group for achieving economies of scale, operational and managerial efficiency and enhance resource mobilization capacity for growth,” Gaur added.
The decision was taken at the board meeting of the respective companies here.
The shareholders of Jaypee Karcham Hydro will get two shares of Rs.10 each of Jaiprakash Power Ventures for every 10 shares held in the existing company. Similarly, the shareholders of The Bina Power Supply Co will get two shares for every 13 held.
“With the proposed amalgamation, Jaiprakash Power Ventures, as a standalone company shall have a power portfolio of 4,520 MW, of which 2,200 MW is within the 11th Five Year Plan,” Gaur said.
The group has interests in civil engineering, construction, cement, power - including hydro and conventional - realty, expressways, hospitality and running non-profit educational institutions.
Bina Power is mandated to set up a 1,500 MW thermal project at Bina in Sagar district of Madhya Pradesh. Phase I of the project, comprising two units of 250 MW each, is under advanced stages of implementation.
Jaypee Karcham Hydro is setting up the 1,000 MW Karcham Wangtoo Hydroelectric Project in Himachal Pradesh which is being completed six months ahead of schedule, with its first unit of 250 MW scheduled to be commissioned in early March.
The top executives addressing the press conference said they were targeting a combined turnover of Rs.2,200 crore for the amalgamated company in the next financial year, from an estimated Rs.800 crore during the current financial year.
They said Jaiprakash Power Ventures, directly or through subsidiaries, was currently implementing hydro and thermal power projects with an installed capacity of 13,720 MW, with a long-term plan for a 60:40 mix of thermal and hydro.
“Jaiprakash Power Ventures will be generating 2,200 MW by the end of 2011, more than 8,000 MW by 2014 and 13,720 MW by 2019, which would include both thermal and hydro power on a 60:40 ratios,” Gaur added.
