Reliance CleanGen (RCL), a 100% subsidiary of Reliance Power and Jaiprakash Power Venture (JPVL), a subsidiary of Jaiprakash Associates (JAL) announced the signing of memorandum of understanding (MOU) for the 100% acquisition by the RCL of the entire hydroelectric power portfolio of JPVL.

JPVL's portfolio comprises of 3 plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir. These plants include 300 MW Baspa stage two plant in Kinnaur, Himachal Pradesh, a 400 MW Vishnuprayagn plant Chamoli District, Uttarakhand and 1091 MW Karcham Wangtoo plant in Himachal Pradesh.

JAL intends to utilise the entire proceed of the proposed transaction to reduce its outstanding debt and thereby deleverage its consolidated balance sheet.

Shares of the company gained Rs 1.45, or 1.6%, to trade at Rs 92.30. The total volume of shares traded was 552,189 at the BSE (10.31 a.m., Monday).