JSW Energy eyes distressed units
Having put on hold all new projects due to the policy and regulatory uncertainties in the power sector, Sajjan Jindal-led JSW Energy is now eyeing acquisition of distressed assets to grow its energy portfolio. “There are several distressed assets available for sale. Given the problems faced by the power sector, we are very cautiously looking at acquisition opportunities,” Vice Chairman N K Jain said. The Mumbai-headquartered company has shelved plans for new power projects as recent policy initiatives in the beleaguered power sector are yet to show results. The only project it plans to go ahead with is the 240-mw hydro power project in Kutehr, Himachal Pradesh. Analysts believe that such a strategy would help the company add capacity at a cost lower than that of setting up a new project as developers may offer projects at a discount. The company has seen a few proposals from independent power producers and is keen on acquiring a project which has fuel availability and power purchase agreement in place so that it can minimise project-related risks.