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Abu Dhabi National Energy picks up 5% stake in HSPL

07 Feb 2013 Evaluate

Abu Dhabi National Energy Company PJSC (TAQA) has acquired 5% stake in Himachal Sorang Power (HSPL), the developer of a 100 megawatt (MW) hydroelectric plant in the Kinnaur district of Himachal Pradesh, with further plans of scaling up its stake to 100%.

The acquisition has been made by TAQA Jyoti Energy Ventures (TAQA Jyoti), a joint venture with Jyoti Structures (JSL), an Indian power infrastructure company. JSL, back in July 2011, inked a Memorandum of Understanding (MoU) with TAQA to explore investment opportunities in the sector. TAQA already operates a 250 MW lignite power station in the Neyveli region of southern India. HSPL can sell upto 40 per cent stake before the Commercial Operation Date (COD), the company has taken permission from the Himachal Government for the minority stake sale.

The Sorang hydroelectric project, which is coming up at the Sorang Khad, a river originating in the Himalayas, will supply electricity to the northern states of India. The construction of the Sorang hydroelectric project stands almost completed and the plant is expected to begin operations in 2013.

HSPL, the developer of the 100 MW hydroelectric plants, with an estimated cost of nearly Rs 600 crore, is a Special Purpose Vehicle (SPV) formed for implementation of the project by a consortium of NCC and IL&FS. While, NCC holds 67 per cent equity in the SPV, IL&FS Engineering owns the balance of 33 per cent.

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