JSW Energy hikes capex for EV biz
Reports net loss of ₹483 crore in Q4
MUMBAI: As thermal power sector remains stressed , JSW Energy is placing its bets on renewable sector.
After announcing entering e-vehicle and energy storage market last year, the company is now eyeing an opportunity in electric buses and trucks market and is aiming to become India’s largest solar rooftop developer, JSW Energy’s Joint MD and CEO Prashant Jain said.
In the board meeting held on Thursday, the company has increased the capex for its electric vehicle (EV) business from earlier announced ₹3,500 Crore over the next three-four years to ₹6,500 crore and the proposed ₹1,200 crore capex for RE (renewable energy) business for the current fiscal. This comes even as JSW Energy recorded a net loss of ₹483 crore against net profit of ₹24 crore in the fourth quarter last year due to higher fuel cost and one-time provisions against outstanding payments.
Sajjan Jindal-led JSW Energy may consider taking Jaiprakash Power Ventures Ltd (JPVL) to NCLT over dues of ₹752 crore that it owes post-cancellation of a deal for acquiring JPVL’s 500 megawatt (MW) Bina thermal power plant.
JSW Energy had advanced ₹1,000 crore to JVPL. The deal initiated in 2015 was cancelled on December 31, 2017.
Announcing the results for the quarter ended on March 31, JSW Energy said it had made a gross provision of ₹574 crore against the outstanding from JPVL.
A part of original ₹1,000 crore advance was repaid by JPVL and more is expected to be recovered, the company noted.
The company is evaluating all options, including legal recourse under the Insolvency and Bankrupcy Code (IBC), to recover the dues.
“JPVL is quite stressed and has been referred to CDR, we are in discussions with JPVL and lenders,” Jyoti Kumar Agarwal, Director-Finance, JSW Energy, said addressing the media in Mumbai. “We are open to taking the company to IBC to recover dues, but we generally consider this loan recoverable.”
Source: thehindubusinessline
