JSW Energy-Jaiprakash hydro power deal gets CCI nod

The fair trade regulator CCI has approved JSW Energy's proposed Rs 9,700 crore acquisition of two hydro-electric projects from Jaiprakash Power Ventures.

Under the proposed deal, JSW Energy would acquire -- 300 MW Baspa II hydroelectric project and 1,091 MW Karcham Wangtoo hydro-electric project -- located in Himachal Pradesh from Jaiprakash Power Ventures.

The deal involves transfer of the power projects to Himachal Baspa Power Company by Jaiprakash Power. Further, JSW Energy would acquire 100 per cent stake in Himachal Baspa from Jaiprakash Power and Jaypee Group Employees Welfare Trust.

In an order released today, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have appreciable adverse effect on competition in India".

While observing that both JSW Energy and Himachal Baspa are engaged in power generation business, CCI said that "there are many players engaged in similar operations."

"Further, on the basis of installed capacity, the market shares of each of JSW Energy and the target assets in the power generation business in India, is insignificant," it noted.

The deal was entered between the parties in November, last year, following which they had filed for CCI approval in December.