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    Essar Power to sell transmission asset to Adani for Rs 1,913 crore

    Synopsis

    Essar Power Transmission Company Limited (EPTCL), an arm of Essar Power, has 465-km transmission lines across three Indian states. The asset transacted is an operational 400 kV (kilovolt) inter-state transmission line linking Mahan in Singrauli, Madhya Pradesh to Sipat pooling substation in Bilaspur, Chattisgarh.

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    The project operates under the CERC (Central Electricity Regulatory Commission) regulated return framework.
    Essar Power Limited, has entered into a definitive agreement with Adani Transmission Limited (ATL) to sell one of its two transmission lines for Rs 1,913 crore, the companies said Friday.

    Essar Power Transmission Company Limited (EPTCL), an arm of Essar Power, has 465-km transmission lines across three Indian states. The asset transacted is an operational 400 kV (kilovolt) inter-state transmission line linking Mahan in Singrauli, Madhya Pradesh to Sipat pooling substation in Bilaspur, Chattisgarh.

    The project operates under the CERC (Central Electricity Regulatory Commission) regulated return framework.

    Essar had commissioned the transmission line in two phases between the years 2013 and 2018 at the cost of Rs 2400 crore. Last June, the company sold its 1200 megawatt (MW) Mahan Power project at Singrauli to Adani Power for around Rs 3000 crore.

    Anil Sardana, MD & CEO, ATL said, “The acquisition of Essar’s transmission asset will consolidate ATL’s presence in central India. With this acquisition, ATL is well on the path to achieve its 20,000 ckt kms (circuit kilometres) target before time."

    ATL's shares were trading at Rs 1953, down 73.80 points on the BSE on Friday when the Sensex settled 49 points lower at 55,769.23.

    Essar Power said this sale is a part of Essar Group's deleveraging strategy. Post the current transaction Essar Power's debt stands at Rs 6000 crore.

    Over the past three years it has repaid over Rs 1,80,000 crore to banks and financial institutions; the largest debt repayment in the history of corporate India.

    Kush S, CEO, Essar Power Ltd said, “With this transaction, Essar Power is rebalancing its power portfolio with the twin objective of deleveraging its balance sheets and investing in green and renewable power, thereby furthering its ESG-oriented future growth."

    Essar Power has a current power generating capacity of 2,070 MW across four plants in India and Canada.

    The company added that it has been in the process of curating a green balance sheet around renewable energy which is in line with its strategy of investing in future-centric businesses which give a superior rate of return within the ESG (Environmental, social, and corporate governance) framework.


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