New entrepreneurs do not think of RoE
The Jaiprakash Group which is selling its entire hydropower portfolio to the Anil Ambani’s Reliance Power is determined to bounce back in the sector by building up to 5,000 MW of new capacity and also aims to rise to the top league of the real estate business by building seven smart cities and completing 300 towers in about two years.
Jaiprakash Associates’ executive chairman Manoj Gaur said that more deals were in the offing in addition to the Rs 12,300 crore deal with the Reliance Power, which will reduce the debt currently Rs 65,000 crore to a manageable level. With more than hydro power projects being valued at Rs 12,300 crore with Reliance Power which will reduce the debt currently to Rs 65,000 crore to a manageable level.
The hydro power projects which have a value of Rs 12,300 crore will be able to bring down our debt to around Rs 52,000 crore. They will do a couple of more transactions in the upcoming six months and they should have a debt of Rs 37,000 to Rs 40,000 crore at group level by March 2015. Gaur stated in an interview that he is sure that the economy would have picked up by then and that it should be a reasonable debt level for the group to service easily.
Source: The Economic Times
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