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The Adani Group's power transmission and distribution arm, Adani Transmission Limited (ATL), is set to acquire Warora-Kurnool Transmission Ltd (WKTL) for an enterprise value of ₹3,370 crore.
ATL has entered into definitive agreements with Essel InfraProjects Ltd (EIL) for the acquisition of WKTL.
In a statement, ATL informed that Warora-Kurnool Transmission has been awarded a project to develop, operate and maintain transmission lines aggregating to approx 1,750 ckt km.
“The 765-kV inter-state transmission line links Warora Warangal and Chilakaluripeta-Hyderabad-Kurnool with a 765/400- kV new sub-station at Warangal. The project was awarded through competitive bidding process on a build, own, operate, maintain basis,” the ATL statement said.
Regulatory approval for substitution of the original awardee in the contract by ATL has already been received from the Central Electricity Regulatory Commission.
Commenting on the development, Anil Sardana, MD & CEO, Adani Transmission Ltd, said: “The acquisition of WKTL will bolster ATL’s pan-India presence, consolidating further its position as the largest private sector transmission company in India. This strategic West to South 765 KV interconnector with substation in southern India, completes ATL’s presence in all the regions of the country. This asset will not only increase ATL’s size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022.”
“The acquisition is a further demonstration of ATL’s drive towards differentiated capability through inorganic growth, successful integration and making such assets value-accretive, for long-term sustainable value creation for its stakeholders,” he added.
The lenders consent and other necessary regulatory approvals shall be obtained before the closure of transaction, ATL informed.
With the acquisition, the cumulative network of ATL will reach approx 17,200 ckt km, out of which approx 12,350 ckt km is already operational and approxiately 4,850 ckt km (including this asset) are in various stages of execution.
This will benefit the company in terms of enhanced scale of operations, cost optimisation and shared resources.
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