Abu Dhabi National Energy Company PJSC (TAQA) has acquired small interest in Himachal Sorang Power Limited (HSPL), the developer of a 100 megawatt (MW) hydroelectric plant in the Kinnaur district of Himachal Pradesh.
The Sorang hydroelectric project is coming up at the Sorang Khad, a river originating in the Himalayas, and will supply electricity to the northern states of India. It uses run-of-the-river technology to convert the river’s natural water flow to electricity.
The acquisition was made by TAQA Jyoti Energy Ventures Pvt. Ltd. (TAQA Jyoti), a joint venture with Jyoti Structures Ltd. (JSL), an Indian power infrastructure company. JSL signed a Memorandum of Understanding with TAQA in July 2011 to explore investment opportunities in the sector.
TAQA Jyoti has initially bought a minority stake in HSPL, which is owned by a consortium comprising NCC Infrastructure Holdings Ltd. and IL&FS Energy Development Company Ltd. Subject to the satisfaction of certain conditions precedent and compliance with applicable regulatory requirements, TAQA and JSL will progressively acquire 100% of the share capital of HSPL and jointly operate the plant. TAQA will hold a majority stake in the joint venture.
However, it will be interesting to see about the deal as sub-contractor of Himachal Sorang Power Limited has blamed HSPL for non-payments of their dues and filled a case against the consortium in hon’ble Himachal Pradesh High Court Shimla and still case is pending with it.