JSW Energy shelves plan to buy GMR unit

JSW Energy has put on hold its plan to acquire GMR Kamalanga Energy three months after announcing the deal, citing uncertainties in the wake of the Covid-19 pandemic and subsequent lockdown.

“We are putting this deal on hold for the time being because there are a lot of uncertainties in the sector,” Prashant Jain, chief executive officer of JSW Energy, said.

The power generation company of the Sajjan Jindal group had in February said it will buy the 1,050 mw Kamalanga project located in Odisha for Rs 5,321 crore from the highly indebted GMR Group.

“We had entered into a definitive agreement which was subject to certain conditions…the fulfilment of these conditions are on hold because of uncertainties,” Jain told ET.

He said the company would revisit the deal “once things normalise”.

GMR did not respond to ET’s query as of press time Wednesday.