Jindal Jhajjar Power to Raise Rs 2,100 Cr Debt for Haryana Plant Buy

Jindal Jhajjar Power Ltd (JJPL), a subsidiary of Jindal Power Ltd (JPL), is set to raise ₹2,100 crore debt to fund its purchase of a 1,320 MW thermal power plant in Haryana from Apraava Energy.

The debt mobilisation supports JPL’s plan to expand its power generation portfolio and strengthen its presence in the northern India power sector.

The funding plan includes a ₹1,500-crore long-term loan with a tenor of 11.25 years, while the remaining amount will be secured through non-convertible debentures (NCDs) scheduled for redemption in the second and third years. India Ratings has assigned an AA+ rating to both the term loan and NCDs, indicating JJPL’s financial stability and alignment with the parent company’s operations.

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The acquisition values the Haryana thermal power plant at an enterprise valuation of about ₹4,000 crore, with a cash payout of ₹3,006 crore. JPL intends to maintain a 70:30 debt-equity structure, with JJPL raising most of the required debt and promoter equity covering the remaining portion. This financing plan aligns with JPL’s broader strategy in thermal power assets and structured capital deployment.

The plant, operational since 2012, has consistently reported high plant load factor (PLF) levels supported by firm coal supply arrangements and steady technical performance. Its operational reliability is a key factor behind JPL’s interest, adding a proven and stable power generation asset to its portfolio.

The deal received clearance from the Competition Commission of India (CCI) for JJPL to acquire 100% shareholding in the project company. With regulatory approvals secured and financing mechanisms in progress, the acquisition moves toward closure, reinforcing JPL’s position in the Indian power sector and expanding its thermal power capacity.