Construction of the run-of-river hydro project on the Sorang Khad river is 90% complete and the plant is expected to begin operations this year. It will supply electricity to the northern states of India, a region currently facing power shortages.
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 already operates a 250MW lignite power station in the Neyveli region of southern India.
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, 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.
