Jaiprakash Power Ventures tanks as hydro-power plant shuts down in Uttarakhand

MUMBAI: Shares of Jaiprakash Power Ventures ended on a weak note and plunged to a 52-week low after the company’s 400-MW Vishnuprayag Hydro power plant in the Chamoli district was shut down following heavy rain in the state of Uttarakhand.

The incessant rain in the region has led to the shutdown of the barrage operations and power generation with effect from June 16, 2013, the company said in a filing to the stock exchanges.

“Unprecedented floods in river Alaknanda has resulted in a force majeure event for 400 MW Vishnuprayag project, commercial aspects of which shall be addressed in accordance with the power purchase agreement between the Uttar Pradesh Power Corporation and the company,” it concluded.

“We are all aware of God’s fury which the entire state of Uttarakhand has faced. As of now there are no damages which have been assessed on our plant due to high floods in the river Alaknanda. We have had to close down the barrage operations which in turn have led to the shut down of the power generation on the plant.

Once the water recedes, we will be able to find out if there is any damage and what is the extent of the damage,” said Suren Jain, MD, Jaiprakash Power Venturem in an interview to ET Now.

Jain added that the company is adequately covered by insurance policies which include loss of profit policies in case of plant shutdowns.

“We have adequate protection under our PPA to add that such situations. Therefore, I do not foresee any loses which the company will see on account of disclosure,” he said.

The stock ended at Rs 17.65, down 10.54 per cent, on the BSE after hitting a 52-week low of Rs 16.90 in trade today.