New Delhi: Bajaj Hindusthan Sugar will seek shareholders’ approval for proposed sale of its co-generation power business to group firm Lalitpur Power Generation Co. Ltd (LPGCL) for about Rs1,800 crore.

In a filing to the BSE, the company said that its board, at its meeting held on Monday, considered seeking necessary approval of shareholders by way of postal ballot “for sale of co-generation business comprising of power generation facility aggregating to 449 MW".

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The approval would also be sought for “entering into contracts/arrangements in respect of the aforesaid transaction with related party for sale of co-generation power business and also transactions of purchase of power and steam, sale of bagasse, bio-gas and water, right to use agreement for use of common facilities", it added.

Last month, Bajaj Hindusthan Sugar had announced plans to sell its co-generation power business to LPGCL for about Rs1,800 crore. Bajaj Hindusthan has 14 sugar mills with cane crushing capacity of 1.36 lakh tonnes per day and alcohol distillation capacity of 800 kilo litres per day.

It posted standalone net loss of Rs137.71 crore for the second quarter of the current fiscal on high finance cost compared to Rs282.72 crore loss in the July-September period of last fiscal.

Besides sugar, Shishir Bajaj-led Bajaj Group has interests in power, ethanol, real estate, personal care products and infrastructure. The group’s power venture includes Bajaj Energy Pvt. Ltd, with 450 MW thermal power generation commissioned in 2012 and Lalitpur Power Generation Co. Ltd with a total of 1,980 MW thermal power generation capacity.