Adani Transmission, one of India’s largest private sector transmission and distribution company, has signed definitive agreements with Essar Power for acquiring 673 ckt kms operational inter-state transmission project owned and operated by Essar Power Transmission at an enterprise value of ₹1,913 crore.
The target asset is an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh with line length of 673 ckt kms. The project operates under the CERC regulated return framework and was commissioned on 22 Sep 2018.
Anil Sardana, Managing Director and CEO, Adani Transmission (ATL) said, “The acquisition of Essar’s transmission asset will consolidate ATL’s presence in central India. With this acquisition, ATL is well on path to achieve its 20,000 ckt kms target before time.”
The proposed transaction will be executed through steps which shall be subject to necessary regulatory approvals and other consents, ATL said in stock exchange release.
In the last three years Essar Power has reduced its debt from a peak level of approximately ₹30,000 crore to ₹6,000 crore. Alongside this, Essar Power has been in the process of curating a green balance sheet around renewable energy which is in line with Essar’s strategy of investing in future-centric businesses which give a superior rate of return within the ESG framework.
Kush S, CEO, Essar Power said, “With this transaction, Essar Power is rebalancing its power portfolio with the twin objective of deleveraging its balance sheets and investing in green and renewable power. Essar Power has a current power generating capacity of 2,070 MW across four plants in India and Canada.”
With this acquisition, the cumulative network of ATL will reach 19,468 ckt kms, out of which 14,952 ckt kms is operational and 4,516 ckt kms is under various stages of execution. Further, with this scale of operations, ATL will derive synergies in terms of O&M cost optimisation and shared resources, ATL added.
During the last three years Essar Power has reduced its debt from a peak level of approximately Rs 30,000 crore to Rs 6,000 crore. Alongside this, Essar Power has been in the process of curating a green balance sheet around renewable energy which is in line with Essar’s strategy of investing in future-centric businesses which give a superior rate of return within the ESG framework.
Kush S, CEO, Essar Power Ltd said, “With this transaction, Essar Power is rebalancing its power portfolio with the twin objective of deleveraging its balance sheets and investing in green and renewable power, thereby furthering its ESG-oriented future growth. Essar Power has a current power generating capacity of 2,070 MW across four plants in India and Canada.”