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Adani Transmission acquires Alipurduar Transmission from KPTL for ₹1,286 crore

Our Bureau: Mumbai | Updated on July 06, 2020

Adani Transmission Ltd (ATL) has acquired Alipurduar Transmission Limited from Kalpataru Power Transmission Ltd (KPTL) for an enterprise value of ₹1,286 crore.

The acquisition is expected to be completed in a few months, subject to all necessary regulatory approvals and other consent, ATL said in a statement.

Alipurduar Transmission Ltd operates transmission lines aggregating 650 ckt kms in West Bengal and Bihar. The project was awarded through a competitive bidding process on a build, own, operate, maintain basis.

Two elements of the project

The project comprises two elements namely Alipurduar-Siliguri Line (element 1) and Kishanganj-Darbhanga Line (element 2). In March 2019, ATL had commissioned the Kishanganj-Darbhanga Line, which was connected to the grid. Element 1 of the project, consisting of the transmission line from Alipurduar to Siliguri, was commissioned onJanuary 20. The transmission line will improve access to power and contribute to the development of Bihar and West Bengal.

Alipurduar Transmission Limited had won this project through a competitive bidding process from REC Transmission Projects Company limited (RECTPCL) for 35 years.

For ATL, with this acquisition, the cumulative network of ATL is estimated to be 15,400 ckt kms, of which, 12,200 ckt kms (including this asset) is operational and more than 3,200 ckt kms is under various stages of execution, the company said. Anil Sardana, MD and CEO, Adani Transmission Ltd, said: “The acquisition of Alipurduar Transmission will bolster the pan-India presence of ATL, consolidating its position as the largest private sector transmission company in India. This asset will take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022.”

This acquisition follows ATL’s buyout of its entire stake in Kharghar Vikhroli Transmission (KVTPL), which is part of Maharashtra State Electricity Transmission Company Ltd (MSETCL).

KPTL is also looking to sell off its Transmission and Distribution assets as it looks to clean up its balance sheet. In 2019, KPTL sold off three power transmission assets to CLP India for ₹3,275 crore.

Manish Mohnot, Managing Director and CEO, KPTL, said: “We now have agreements in place for all our T&D assets such as ATL, Kohima and Jhajjar transmission assets. In FY20, we have already completed sale and transfer of Satpura transmission asset. We are now targeting to complete the sale and transfer of all balance T&D assets in FY21.”

Ernst & Young (EY) and Khaitan & Co were advisors to KPTL for this transaction.

Shares of Adani Transmission were trading 0.34 per cent higher at ₹262.20 apiece on BSE.

Published on July 06, 2020

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