Indian Banks

Adani Transmission buys Mahan-Sipat transmission line for Rs 1913 crore

By Virginia J. Ruiz

Adani acquires Mahan-Sipat transmission line from Essar Power

Photo: iStock

Adani Transmission Ltd. (ATL), a private sector transmission and distribution company, has signed definitive agreements with Essar Power Ltd. (EPL) for the acquisition of an interstate transmission project owned and operated by Essar Power Transmission Ltd. (EPTCL). The enterprise value of the transaction is Rs 1,913 crore.

The sale is part of the Essar Group’s debt repayment strategy under which it has already repaid Rs 1.8 lakh crore to Indian banks.

Essar Power Transmission Company Limited (EPTCL) owns 465 km transmission lines across three Indian states. The asset subject to the transaction is an operational 400 kV interstate transmission line connecting Mahan to the Sipat pooling substation. The project operates under CERC’s regulated return framework, Essar said in a statement.

Over the past three years, Essar Power has reduced its debt from an all-time high of around Rs 30,000 crore to Rs 6,000 crore. At the same time, Essar Power is in the process of establishing a green balance sheet around renewable energy, which is in line with Essar’s strategy to invest in forward-looking companies that offer a superior rate of return within the ESG framework. , he added.

The acquisition of Essar’s transmission line will solidify ATL’s presence in central India. With this acquisition, ATL is well on its way to reaching its goal of 20,000 ckt km ahead of schedule.

“We continue to stay at the forefront of grid stability and deliver sustainable, reliable and affordable energy solutions while creating long-term sustainable value for our stakeholders,” said Anil Sardana, Managing Director and CEO of Adani Transmission Ltd.

The acquisition aligns with ATL’s value-added growth strategy through organic and inorganic growth opportunities. With this acquisition, ATL’s cumulative network will reach 19,468 ckt km, of which 14,952 ckt km is operational and 4,516 ckt km is in various stages of execution, a statement from Adani Transmission added.

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Virginia J. Ruiz
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