Shimla: A consortium led by TAQA, an Abu Dhabi-based energy and water company, has agreed to acquire two hydropower projects in Himachal Pradesh from Jaiprakash Power Ventures Ltd., a statement said here Sunday.
The consortium agreed to purchase the Baspa Stage II and Karcham Wangtoo plants, an official statement by TAQA said.
TAQA, which holds a 51 percent stake in the consortium, will have control of operations and management of both facilities.
The remaining equity will be held by one of Canada's largest institutional investors (39 percent) and IDFC Alternatives' India Infrastructure Fund II (10 percent), it said.
The agreement follows the signing of the UAE-India Bilateral Investment Promotion and Protection Agreement in December 2013.
The deal also materialised after the west Asian country committed to invest $2 billion in India's infrastructure sector at the first UAE-India High Level Joint Task Force on Investments meeting held in Abu Dhabi in February 2013.
Both run-of-the-river plants have a combined power generation capacity of 1,391 MW and are located in Kinnaur district.
The plants are 35 km from the Sorang hydroelectric plant, in which TAQA acquired a stake last year, the company said.
After the transaction, TAQA's gross operational power generation capacity in India will total 1,741 MW, comprising three hydroelectric facilities and one lignite power plant.
The acquisition is expected to close in 2014 and is subject to regulatory and third party approvals, it added.
Jaiprakash Power Ventures Ltd. is a subsidiary of infrastructure conglomerate Jaypee Group.