Tata Steel will acquire 74 per cent stake in Bhubaneshwar Power Private Ltd (BPPL) from JL Power Ventures Private Ltd for Rs 255 crore to ramp up its captive source of power.
The acquisition provides an opportunity to Tata Steel to meet growing power demand, it added.
Tata Steel, together with its 100 per cent subsidiary T S Alloys Ltd (T S Alloys), is the holding company of BPPL, a company statement said.
"Tata Steel on November 30, 2017, executed definitive agreements to acquire 74 per cent equity shares of BPPL from JL Power Ventures Private Ltd (JL Power)," Tata Steel said in the statement.
Tata Steel further said the acquisition will require an approval from the Odisha Industrial Infrastructure Development Corporation, apart from a few other clearances, and the indicative period for completion of the acquisition is two months.
Incorporated in 2006, Bhubaneshwar Power Private Ltd (BPPL) is into the business of power generation and a JV among Tata Steel, T S Alloys and JL Power, a subsidiary of Jasper Industries Pvt Ltd.