Adani Transmission (ATL), Adani Group’s electrical power transmission company, is on track to complete the high voltage direct current (HVDC) project in Mumbai, as it expects to all approvals by September.
Going ahead, the firm intends to spend about Rs 7,500-8,000 crore per annum, an increase from its earlier capex of Rs 6,000 crore per annum between transmission and distribution business. The addition in capex is for the smart metering business, which need the additional Rs 1,500-2,000 crore per annum.
On the HVDC project, the company got approvals for environment and forest, and is close to achieving coastal regulation zone approvals, and has been awarded all contracts. The laying of cable for the project has also commenced, while the company has already laid cable across 15 km, sources close to the development said.
ATL has also acquired land and is on track to complete the entire project before the March 2025 deadline.
The HVDC transmission system consists of a rectifier station to convert power from 400 KV alternating current to 500 KV direct current and can transmit bulk power over long distances in a single hop over a single transmission line. The technology minimises transmission losses, capacity to precisely control the amount of power to be transmitted and prevents blackouts.
The new HVDC link in Mumbai will supply up to 1,000 MW of electricity, increasing power from outside the city by almost 50%. The link will strengthen the existing transmission infrastructure and ensure a reliable power supply in the region.
The company has also been awarded two smart metering contracts, one from BEST and another from Assam. While the company is in the process of closing its smart metering programme in Assam, that for BEST in Mumbai has already been closed.
Further, it is also taking part in many ongoing biddings processes across Chhattisgarh, Maharashtra, Uttar Pradesh, Himachal Pradesh and Uttarakhand. The firm is also expecting a major tender from Tamil Nadu too.
ATL is also in the process of changing its name to Adani Energy Solutions as it moves beyond transmission to distribution business and other energy solution aspects for customers. Earlier in May, the company received board approval for the name change.
On Monday, ATL received shareholders’ approval to raise up to `8,500 crore through issuance of shares through qualified institutional placement (QIP) or other modes.