HEG Limited announced that its associate company, Bhilwara Energy Limited, has successfully acquired Statkraft's 49% minority stake in Malana Power Company Limited. This strategic move positions the LNJ Bhilwara Group as the sole owner of Malana Power Company, marking a significant expansion in its renewable energy portfolio.

Transaction Details

The acquisition includes Statkraft's stakes in two hydropower plants in Himachal Pradesh:

1. Malana Hydropower Plant (86 MW)
2. Allain Duhangan Hydropower Plant (192 MW)

These plants have been operating as a 51:49 joint venture between LNJ Bhilwara Group and Statkraft since 2004, supplying clean and flexible energy to meet India's growing power demands.

Strategic Implications

Mr. Riju Jhunjhunwala, Managing Director of Bhilwara Energy, commented on the acquisition: "As we assume complete ownership of the Malana Power Company assets, LNJ Bhilwara Group is strategically positioned to scale its presence in the power sale business and actively explore new opportunities in renewable energy, with growth and technology at the core."

This move aligns with LNJ Bhilwara Group's long-term strategy to strengthen its position in the clean energy sector and contribute to India's sustainable growth story.

Statkraft's Perspective

Fernando de Lapuerta, Executive Vice President International at Statkraft, stated, "Our partnership with the LNJ Bhilwara Group has been a cornerstone of our Indian hydropower operations. These projects, when commissioned, paved the way for private sector investments in hydropower in India."

The divestment is in line with Statkraft's strategy to reallocate capital to its core markets in Europe and South America, allowing the Norwegian state-owned renewables company to focus on markets where it can achieve scale and long-term competitiveness.

LNJ Bhilwara Group's Renewable Energy Focus

With over two decades of experience in India's hydropower sector, the LNJ Bhilwara Group continues to play a pivotal role in advancing renewable energy adoption in the country. This acquisition further solidifies the Group's commitment to contributing to India's clean energy transition.

The transaction not only strengthens LNJ Bhilwara Group's position in the renewable energy sector but also demonstrates its dedication to sustainable development and clean power generation in India.

As HEG Limited's associate company takes full control of these significant hydropower assets, it sets the stage for potential growth and expansion in the renewable energy space, aligning with India's broader goals for sustainable energy development.

HEG Limited , a leading graphite electrode manufacturer, has released its unaudited financial results for the quarter ended June 30, 2020, revealing the significant impact of the COVID-19 pandemic on its operations and financial performance.

Operational Disruptions

The company faced substantial operational challenges due to the nationwide lockdown declared on March 23, 2020. HEG Limited temporarily suspended its operations in compliance with government directives. The company resumed its activities on April 23, 2020, after implementing necessary safety measures and protocols.

Financial Performance

Despite the challenging environment, HEG Limited managed to report positive financial results for the quarter:

The extended lockdown period significantly impacted the company's operations and financial results. As a result, quarterly comparisons with previous periods may not provide an accurate representation of the company's performance trajectory.

Liquidity and Asset Assessment

In light of the ongoing economic uncertainty, HEG Limited conducted a thorough assessment of its liquidity position and asset recoverability. Based on current economic indicators, the company expects to recover the carrying amount of its assets. However, management acknowledges the inherent uncertainty surrounding the future impact of COVID-19 on business operations.

Outlook

While the company faces challenges due to the pandemic, HEG Limited's ability to generate profit during this difficult quarter demonstrates its resilience. The management continues to monitor the situation closely and adapt its strategies to navigate the evolving business landscape.

Investor Education Initiative

In a separate development, HEG Limited has recently participated in the "Saksham Niveshak" campaign, a 100-day special initiative launched by the Investor Education and Protection Fund Authority (IEPFA) of the Ministry of Corporate Affairs. This campaign aims to facilitate shareholders in claiming unclaimed or unpaid dividends and updating their KYC and nomination details.

The company urges its shareholders to take necessary actions to claim any unpaid dividends and update their information to avoid potential transfer of shares to the IEPF. Shareholders holding shares in demat form are advised to contact their Depository Participants, while those with physical shares should submit the required documents to the company's Registrar & Share Transfer Agent.

As the business environment continues to evolve, HEG Limited remains committed to maintaining transparency with its investors and adapting to the challenges posed by the ongoing global health crisis.