JP Power rallies over 8% as Reliance Power plans to buy Jaypee's hydro assets

NEW DELHI: Jaiprakash Power Ventures Ltd rallied about 9 per cent in intraday trade, after Anil Ambani-controlled Reliance Power plans to acquire the entire hydroelectricity portfolio of the Jaiprakash Group for about RS 12,000 crore.

Reliance Power has also signed an initial agreement for India's biggest deal in the infrastructure sector other than telecom, ET reported.

Reliance Power was trading 2.3 per cent higher at Rs 92.95. It hit a low of Rs 91.50 and a high of Rs 93.60 in trade today.

"Reliance CleanGen (RCL), a 100% subsidiary of Reliance Power (part of the Anil Ambani-led Reliance Group), and Jaiprakash Power Ventures (JPVL), a subsidiary of Jaiprakash Associates ( JAL), today announced the signing of an exclusive memorandum of understanding (MOU), for the 100% acquisition by RCL of the entire hydroelectric power portfolio of JPVL," a company statement said.

"JPVL's hydroelectric power portfolio has an aggregate capacity of nearly 1,800 Mw, fully in operation, the largest in the private sector in India, and with an asset base of over Rs 10,000 crore. The portfolio comprises ... three plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir," it said.