Reliance CleanGen (RCL), a 100% subsidiary of Reliance Power, and Jaiprakash Ventures Ltd(JPVL) signed an exclusive Memorandum of Understanding (MOU), for the 100% acquisition by RCL of the entire hydroelectric power portfolio of JPVL. JPVL’s hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, the largest in the private sector in India.
The power plants are Baspa Stage II of 300 mw, Karcham Wangtoo of 1091 mw, both in Himachal, and Vishnu Prayag of 400 mw in Uttarakhand. The companies have not announced the deal size, it is believed that Reliance Power will pay huge premium on the assets valued at ~Rs 100bn. We believe this to be positive for JPVL in short to medium term and negative in short term for Reliance power if the deal is at a significant premium.
Centre eases rules for trees on private land
In a bid to liberalize the “permit raj” governing agro-forestry, the Union environment ministry has issued guidelines to simplify the rules for growing, felling and transportation of trees grown on private lands.
The guidelines allow farmers and other tree growers to dispose and transport short-rotation timber species grown on their own property and not available in neighboring forests, with permission from village-level bodies. The present regulation on felling of timber and transit permits varies from state to state, which discouraged farmers and tree planters from growing trees on their own land.
U.S. Durable Goods Orders Rebound 0.7% In June, More Than Expected
After reporting an unexpected drop in new orders for U.S. manufactured durable goods in the previous month, the durable goods orders rebounded by more than expected in the month of June. The Commerce Department said durable goods orders increased by 0.7% in June following a 1.0% decrease in May. Economists had been expecting orders to climb by about 0.5%.
U.K. Q2 GDP Growth Stable At 0.8%; Returns To Pre-Crisis Level
British economic growth remained high as expected in the second quarter as a robust expansion in the dominant service sector, and industry completely offset the slight weakness in the construction sector. With the second quarter expansion, GDP returned to its pre-crisis level. GDP grew 0.8% sequentially in the second quarter, the same rate as seen in the first three months of the year, preliminary data published by the Office for National Statistics showed. The growth figure matched economists’ expectations.