Anil Ambani-led Reliance Infrastructure Ltd (RInfra) has announced transferring its Western Region System Strengthening Scheme (WRSSS) transmission undertakings to its two subsidiaries as part of the process to sell the businesses to Adani Transmission Limited.

RInfra has executed Business Transfer Agreement (BTA) for WRSSS B & C Undertakings located in Maharashtra, Gujarat, Madhya Pradesh and Karnataka, the company said in the statement. All key approvals from Competition Commission of India (CCI), Central Electricity Regulatory Commission (CERC) and lenders have been obtained and transaction is expected to be closed shortly, it added.

RInfra and Adani Transmission have signed a binding termsheet agreement for RInfra’s three operational transmission projects —WRSSS B, WRSSS C and Parbati Koldam Transmission Company Limited (PKTCL), which is a joint venture company of RInfra and Power Grid Corporation of India (each having 74 per cent and 26 per cent equity respectively) in 2016.

Under this transaction, Adani Transmission would acquire 100 per cent ownership in WRSSS B & C and 74% ownership in PKTCL. WRSSS B & C transmission projects and stake in PKTCL were valued at ₹1,000 crore each.

According to the company, the approvals for sale of RInfra’s stake in PKTCL are still in the process.

Reducing debts

The entire sale proceeds will be utilised for reducing company’s consolidated debt which stood at ₹29,000 at the end of the quarter ended June, 30. According to Lalit Jalan, the CEO of Reliance Infrastructure, the company was targeting debt reduction to ₹20,000 crore as a result of various initiatives.

Apart from divesting power transmission assets, the company was planning to

deleverage by around ₹2,500 through an infrastructure investment trust (InvIT) route and expecting to receive at least 75 per cent of arbitration awards from Delhi Metro Rail Corporation (DMRC) which, including interest, amounts to total of

₹4,725 crore.

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