Mumbai : Sajjan Jindal-led JSW Energy is considering initiating Insolvency and Bankruptcy Code (IBC) resolution process against Jaiprakash Power Ventures (JPVL). At present, the company and lenders are discussing with JPVL to find a solution and speed up the recovery process.
Prashant Jain, joint MD and CEO of JSW Energy, said, “It will take JPVL to NCLT if no resolution is met.” As part of a deal to acquire JPVL’s Bina power assets, JSW Energy had given an advance loan of Rs 1,000 crore. But the deal was terminated in January this year and so far, JSW Energy recovered Rs 248 crore.
Jyoti Kumar Agarwal, director finance, JSW Energy, said, “Against the Rs 1,000 crore advance, we have already recovered Rs 248 crore. The outstanding is Rs 752crore.” But the company has made a provision of Rs 574 crore (recorded gross) in Q4FY 2018, but we are hopeful of recovering it. Agarwal asserted, “We are in regular discussion with lenders and JPVL in terms of finding solution to this loan.”
The company has reported a consolidated net loss of Rs 483 crore for the quarter ended March 31, mainly due to provisioning of this loan.
The company is planning to set aside Rs 1,200 crore for FY2018-19 for making electric vehicles (EV), Jain added.
The company plans to venture into electric cars, electric bus and light duty electric trucks. While 2022 is the target for electric cars, the company is optimistic about launching other vehicles by 2020. Without spilling more details about the company’s plan with electric vehicles, he said that the plan is to partner with technology partners for the endeavour rather than work on technology part. “We are in talks with technology partners on this,” Jain said.
The manufacturing plant for EVs will be set up close to one of its existing unit. “The plant that we are planning will also have a battery manufacturing unit.” Other than solar, the company is also looking at wind and hydro energy.
JSW Energy is also evaluating wind energy, said Jain. Talking about hydro, he said, “We are awaiting for the new hydro policy. When the new hydro policy is announced, we will revive our existing (Himachal Pradesh) project. We are evaluating wind but our concentration is solar.”
Company posts Rs 483-cr loss
MUMBAI: JSW Energy reported a consolidated net loss of Rs 483.07 crore for the quarter to March, mainly due to provisioning of Rs 418 crore related to a loan. It had reported a consolidated profit of Rs 23.72 crore in the year-ago period. For the full year, it has reported a net profit of Rs 77.97 crore, down from Rs 629.03 crore in FY17.