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GMR buys out US firms from two power projects
February 05, 2003 16:36 IST
The Bangalore-based GMR group has bought out the stakes of US power majors CMS Energy and Public Service Enterprise Group in Tanir Bhavi and Basin Bridge power plants in Karnataka and Tamil Nadu, respectively.
Under a deal concluded recently, GMR group would hike its stake in the 220 MW, naphtha-fired, barge-based Tanir Bhavi power project in Mangalore from 26 per cent to 100 per cent after buying out the stake of PSEG.
In a separate deal relating to the 200 MW, LSHS-fuelled Basin Bridge project in Chennai, the CMS group has sold its entire 48 per cent stake to GMR group.
While GMR refused to comment on the size of the transaction, sources placed the deal in the range of Rs 200-300 crore (Rs 2-3 billion).
PSEG, which holds around 20 per cent stake in PPN power project in Tamil Nadu, is also reported to be scouting for buyers to offload its equity as part of the strategy to exit the country.
CMS has also reported to have firmed up plans to exit the power business in India. It holds 23 per cent stake in Andhra Pradesh-based, gas-fired Jegrupadu power project where it has sounded out the promoters - GVK group - on its plans to sell off its holding.
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