Adani Transmission Limited To Acquire Essar’s Mahan-Sipat Transmission Project

This acquisition will enable ATL to expand its cumulative network to 19,468 ckt kms, out of which 14,952 ckt kms is operational and 4,516 ckt kms is under various stages of execution.

Adani Transmission Ltd signed definitive agreements with Essar Power Ltd to acquire Mahan-Sipat Transmission Project.

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New Delhi: Adani Transmission Ltd. (ATL) on Friday signed definitive agreements with Essar Power Ltd. (EPL) in Ahmedabad for acquiring its 673 ckt kms operational inter-state transmission project at a cost of Rs 1,913 crore. 

The project was commissioned on September 22, 2018 and operates under the CERC regulated return framework. 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 kms. 

The company, in its press release stated that the proposed transaction will be undertaken through transaction steps which shall be subject to necessary regulatory approvals and other consents. 

This acquisition will enable ATL to expand its cumulative network to 19,468 ckt kms, out of which 14,952 ckt kms is operational and 4,516 ckt kms is under various stages of execution, the company stated. 

“Further, with this scale of operations, ATL will derive synergies in terms of O&M cost optimization and shared resources. 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,” further read the official statement. 

Speaking on the acquisition, Anil Sardana, MD and CEO, Adani Transmission Ltd said, “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. We continue 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.”