Bajaj Hindusthan Sugar has received an approval for sale and transfer of co-generation power business of aggregating capacity of 449 MW located at 14 locations to Lalitpur Power Generation Company (LPGCL), a group company for a lump sum consideration in cash of approximately Rs 1,800 crore, as a going concern on slump sale basis in accordance with the Business Transfer Agreement to be entered into with LPGCL. The board of directors at its meeting held on December 20, 2016 has approved for the same.
The entire amount of cash consideration is proposed to be utilized by the company towards advance repayment of its existing term debt. The proposed sale and transfer of co-generation power business will be subject to approval of members, lenders and all other statutory /regulatory authorities.
Bajaj Hindusthan is engaged in the manufacture of sugar. The company is India’s largest ethanol producer and the pioneer of India’s fuel ethanol programme. They also generate power from the bagasse produced in their sugar mills. As well as produces environment-friendly Medium Density Fibre Boards (MDF) and Particle Boards (PB), both from their bagasse waste.
