Resurgent Power, backed by the Tata Group, has emerged as the frontrunner to buy the Indian firm Jaypee Power Ventures. Lenders, who held the majority of the shares in Jaypee, had decided to sell the company. Jaypee, with 2200 MW of hydropower and coal-fired power generation assets, has around $19.2 billion in loans.
The Canadian pension fund CDPQ, along with two Middle East sovereign funds – Kuwait Investment Authority and Oman State General Reserve – jointly own 65 per cent of Resurgent Power, while Tata Power is the operating partner with a 25 per cent stake. ICICI Bank, which owns 10 per cent, is also shareholder in the restructured Jaypee Power.
Jaypee Power has one hydropower plant in the Indian state of Himachal Pradesh, and two coal-fired power plants in Madhya Pradesh. Tata Power, as a shareholder, will ensure the supply of coal to manage the daily operations of the assets, if the deal goes through.