Shares of Jaiprakash group companies plummeted as much as 20 per cent in Thursday’s trade after Reliance Power limited called off its discussions with Jaiprakash Power Ventures ltd (JPVl) to buy three hydropower projects citing regulatory uncertainties. The proposed acquisition would have made it one of the largest private power companies with a 7,800MW operating capacity by the end of 2014-15. Shares of Reliance Power also went down by 7.44 per cent closing the day at Rs70.25.
“Due to prevailing regulatory uncertainties, and tariff issues, which impact valuations, Reliance Power and Jaiprakash Power Ventures ltd have terminated discussions regarding Reliance Power’s acquisition of JPVl’s hydro portfolio of three projects, with aggregate capacity of 1,791MWs (megawatts),” R-Power said in a statement.