UAE National Energy Company TAQA led consortium, the international energy and water Company of Abu Dhabi decided to acquire two hydroelectric power (HEP) plants for about 1.6 billion dollar on 2 March 2014. As a result TAQA became the largest private operator of hydroelectric plants in India.
TAQA agreed to purchase the Baspa Stage II and Karcham Wangtoo HEP plants in Himachal Pradesh. Both the plants have a combined power generation capacity of 1391 megawatts (MW). These HEP plants are acquired from Jaiprakash Power Ventures Limited.
TAQA will hold a 51 percent stake in the consortium and will have control of operations and management of both facilities under the deal. The remaining equity will be held by one of Canada’s largest institutional investors (39 percent) and IDFC Alternatives India Infrastructure Fund II (10 Percent).
The equity invested by the consortium in the acquisition of the two hydroelectric plants will amount to approximately 3820 crores rupees (616 million dollars).The consortium will also acquire the assets non-recourse project debt.
Under the UAE-India Bilateral Investment Promotion and Protection Agreement (BIPPA) signed in December 2013, UAE committed to invest 2 billion US dollar in India’s infrastructure sector fallowed by this agreement.
TAQA is an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents.
TAQA interest lies in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. It’s presence is in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.
When: 2 March 2014