Jaypee Group company Jaiprakash Associates Ltd on Wednesday said it would sell its wind power plants with a total capacity of 49 megawatts (MW) as it tries to bring down debt.
As of March 2015, the group had a total debt Rs.63,999.15 crore, according to data from company database Capitaline.
In a BSE filing on Wednesday, Jaiprakash Associates said its board has approved the proposal to sell wind power plants in Maharashtra and Gujarat on a slump-sale basis.
Slump sale implies sale of one or more undertakings that can operate independently for a lump sum amount.
The company did not say if it has found a buyer or the amount for which it would sell its assets. Phone calls and email queries sent to Jaiprakash Associates since Tuesday remained unanswered.
Jaiprakash Associates has interests in engineering and construction, power, cement, real estate, hospitality and expressways.
Subsidiary Jaiprakash Power Ventures Ltd, which this month completed the sale of its two hydropower projects with capacity of 1,391 MW to JSW Energy Ltd, also operates 2,220 MW of thermal and hydropower plants in the country. It is also setting up a 1,980-MW Bara thermal power plant. Wind power currently makes for a very small portion of its overall portfolio.
Renewable energy, which includes wind and solar power, has received renewed thrust from the Union government which aims to set up 60 GW of wind capacity and 100 GW of solar power capacity by 2022. This has led to a host of local and multinational firms to plan investments in setting up wind and solar power plants in India.
Apart from concluding the sale of Karcham Wangtoo and Baspa hydropower plants to JSW Energy for Rs.9,275 crore, Jaiprakash Power Ventures also entered into a so-called memorandum of understanding (MoU) with JSW Energy for the sale of its 500 MW Bina thermal power plant in Madhya Pradesh.
Both deals are crucial for the Jaiprakash Group which has high debt on its books and has been trying to sell its assets to reduce it. The group has three listed companies – Jaiprakash Associates, Jaiprakash Power Ventures and Jaypee Infratech.