A group led by Abu Dhabi National Energy Company (Taqa) is looking to buy two hydropower plants owned by India-based Jaiprakash Power Ventures in a deal worth about $2 billion, according to sources.

The Indian company said its board would meet on Saturday to consider recommendations for cutting debt and boosting shareholder value, they stated.

The shares in the company based in the north Indian state of Himachal Pradesh surged on Friday, fuelled by market expectations on the plant deal.

The Jaiprakash Power stocks gained as much as 12.5 per cent, while shares in parent Jaiprakash Associates were up 4.2 per cent, moves traders said were driven by expectations for a deal

Both Jaiprakash and the Abu Dhabi company declined to comment on Friday.-Reuters