In a move aimed at trimming its debt further, Subhash Chandra-backed Essel Group has decided to sell 205 MW of operating solar power assets worth ₹1,300 crore to Adani Green Energy Limited (AGEL) .

The assets, owned by Essel Green Energy Pvt Ltd and Essel Infraprojects Ltd, are located in Punjab, Karnataka and Uttar Pradesh. They have long-term power purchase agreements (PPAs) with State electricity distribution companies.

This is the second major deal announced by Essel Group, which is racing against time to settle its debt. Earlier, it had decided to sell an 11 per cent promoter stake in Zee Entertainment (ZEEL) to Invesco Oppenheimer for ₹4,224 crore.

Halving of debt

The promoter debt was initially at ₹11,000 crore. Following the deals with Oppenheimer and Adani, the overall debt will be ₹5,476 crore.

Essel Group has entered a standstill agreement with lenders under which it has promised to pay off its entire debt by the end of September.

An Essel Group spokesperson said: “Our asset divestment process is well within the purview of the agreed timelines with our lenders. The sale of the group’s solar assets to AGEL is yet another positive step taken in this direction.”

Essel Green Energy has an additional 480 MW of solar assets portfolio to sell. The group is also looking to sell off its infrastructure assets. Punit Goenka, CEO at Zee Enterprises, recently told BusinessLine that if the company is unable to raise enough money from selling non-media assets, it may sell an additional 4-5 per cent of Zee Entertainment to other financial investors.

Adani Green Energy Limited (AGEL is one of the largest renewable companies in India with a current project portfolio of 5,290 MW. Its CEO Jayayant Parimal has publicly stated that its vision is to have a portfolio of 15 GW of renewable assets by 2025.

 

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