BackLeader in the Spotlight: Manoj Gaur
Gaur will have to face the challenge of executing the Jaypee-R-Power deal, as R-Power is also debt-heavy
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Who: Manoj Gaur, executive chairman, Jaypee Group.
Why: Jaypee Group’s unit Jaiprakash Power Ventures Ltd on 27 July agreed to sell its hydropower assets to Reliance Power Ltd (R-Power), part of Anil Ambani’s Reliance Group, after a consortium led by Abu Dhabi’s Taqa, called off a ₹ 9,689 crore plan to buy its two hydropower plants.
Background: Selling projects is key to Gaur’s efforts to reduce the group’s debt of around ₹ 60,000 crore to ₹ 45,000 crore by March. R-Power has agreed to acquire all three of its hydropower assets—Baspa Stage II (300MW) and Karcham Wangtoo (1,091MW) in Himachal Pradesh, and Vishnuprayag (400MW) in Uttarakhand. Taqa had plans to buy only two plants.
Experience: Gaur, with his experience of over 25 years, could find a buyer soon after Taqa walked out. Jaypee Group will also get a $9 million breakaway fee from Taqa. Gaur holds a degree in civil engineering from the Birla Institute of Technology and Science, Pilani. He has been leading the implementation and operation of Jaiprakash Associates Ltd’s cement plants. He has supervised diverse activities such as engineering, construction, hydropower, thermal power, real estate, expressways and fertilizers.
Challenge: Even though he managed to get a buyer, Gaur will have to face the challenge of executing the deal, as R-Power is also debt-heavy. He has a tough task ahead, of convincing lenders till he successfully executes the deal. Also, for Gaur, this is a distress sale as the group tries to pare its debt. Selling these operating assets will have an impact on Jaypee’s cash flows in the future.
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