New Delhi: In a bid to consolidate its presence in central region, Adani Transmission Ltd (ATL), one of the largest private-sector transmission and distribution companies, has signed definitive agreements with Essar Power to buy its Mahan-Sipat transmission line for Rs 1,913 crore.
In a statement, the company said on Friday that Mahan-Sipat transmission line is 673 ckt kms operational inter-state transmission project owned and operated by Essar Power Transmission Ltd. The enterprise value for the transaction is pegged at Rs ,913 crore, according to Adani Transmission Ltd, reported news agency ANI.
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The proposed takeover will be executed through transaction steps which shall be subject to necessary regulatory approvals and other consents.
How it will benefit Adani Transmission Ltd?
"The acquisition of Essar's transmission asset will consolidate ATL's presence in central India. With this acquisition, ATL is well on path to achieve its 20,000 ckt kms target before time," informed Anil Sardana, MD & CEO, Adani Transmission Ltd.
With this acquisition, the company aims to remain at the forefront of grid stability and provide sustainable, reliable, and affordable energy solutions while creating long-term sustainable value for our stakeholders
The target asset is an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh with line length of 673 ckt km. Operated under the CERC regulated return framework, the project was commissioned on 22 September 2018.
With this acquisition, the cumulative network of ATL will reach 19,468 ckt kms, out of which 14,952 ckt kms is operational and 4,516 ckt kms is under various stages of execution.
"It will also fortify its position of being the largest private sector transmission and distribution company in the country. The asset will be operated in line with ATL's operational excellence framework committed to the highest standard of Environment, Social and Governance (ESG) aspects," the company said.