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IndiGrid to acquire Gurgaon Palwal Transmission Limited for ₹1,080 crore

Our Bureau Mumbai | Updated on April 09, 2020 Published on April 09, 2020

IndiGrid will acquire Gurgaon Palwal Transmission Limited (GPTL) for Rs 1,080 crore and plans to add solar energy projects going forward.

The Board of the Investment Manager of IndiGrid, India’s first InvIT in the power sector, has approved the acquisition of GPTL from Sterlite Power, at a value of up to ₹1,080 crore, the company said in a filing to the exchanges.

GPTL is part of Inter State Transmission Scheme (ISTS) network and consists of three gas insulated substations (GIS) with a total transformation capacity of 3,000 MVA and 270 circuit kilometres of 400 KV transmission lines spread across Uttar Pradesh, Haryana and Rajasthan.

Further, this acquisition would increase the Assts Under Management (AUM) of IndiGrid by 10 per cent to $ 1.75 billion. IndiGrid’s portfolio will increase to ten power transmission projects with a total network of 25 power transmission lines and 7 substations that span 6,080 circuit kilometres and 10,735 MVA across 15 states after this acquisition.

Harsh Shah, Chief Executive Officer of IndiGrid, said: “GPTL acquisition is in line with our strategy for acquiring transmission projects to grow returns for unitholders. Over last 12 months, we have raised ₹2,500 crore via preference issue and acquired ₹7,500 crore worth of transmission assets. The major shareholders in IndiGrid are investment firm KKR, GIC, and Sterlite Power Grid Ventures Limited, who is also the sponsor of IndiGrid owns 15 per cent.

Further, IndiGrid intends to acquire solar projects with robust power purchase agreements, operational track record and financially strong counterparties or off-takers. In addition to long contract life and low risk cash flows, solar projects complement transmission portfolio with synergies on operations and regulatory establishments, stated Shah. With the operational and financial synergies, such diversification will result in additional accretion for unitholders while maintaining a AAA rated cash flows to unit-holders.

We believe that solar energy sector in India has matured and our proposed diversification in solar energy projects would result in improved returns to unitholders, added Shah.

Published on April 09, 2020

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