Adani Transmission Ltd (ATL), India’s largest private sector transmission and distribution company, said Friday that it has signed definitive agreements with Essar Power to purchase its Mahan-Sipat transmission line for Rs 1,913 crore.
The Mahan-Sipat transmission line is an operational interstate transmission project of 673 ckt kms owned and operated by Essar Power Transmission Ltd. The enterprise value for the transaction is Rs 1,913 crore, Adani Transmission Limited said in a statement.
“The acquisition of Essar’s transmission assets will consolidate ATL’s presence in central India. With this acquisition, ATL is well on track to achieve its target of 20,000 ckt kms on time. We continue to lead the way in grid stability, offering sustainable, reliable, and affordable energy solutions, while creating long-term sustainable value for our stakeholders,” said Anil Sardana, MD & CEO, Adani Transmission Ltd.
The targeted assets are an operational 400 kV interstate transmission line connecting Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh with a line length of 673 ckt-km.
The project operates under the CERC-regulated yield framework and was commissioned on September 22, 2018. The proposed transaction will be executed through transaction steps that are subject to necessary regulatory and other approvals.
Adani Transmission Ltd said the “acquisition is in line with ATL’s value-added growth strategy through both organic and inorganic growth opportunities. With this acquisition, ATL’s cumulative network will reach 19,468 ckt kms, of which 14,952 ckt kms are operational and 4,516 ckt-kms are in different stages of execution. Furthermore, with this scale of operations, ATL will achieve synergies in O&M cost optimization and shared resources.”
It will also strengthen its position as the largest private sector transmission and distribution company in the country. The asset will be managed in accordance with ATL’s operational excellence framework committed to the highest standard of environmental, social and governance aspects ( ESG),” the company said.
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