Essar Power to sell transmission line to Adani for Rs 1913 crore

In a statement, Essar Power said it "has entered into a definitive agreement with Adani Transmission Ltd to sell one of its two transmission lines for Rs 1,913 crore".

Written by FE Bureau

June 4, 2022 02:45 IST

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

Essar Power on Friday said it has entered into a definitive agreement with Adani Transmission to sell one of its two transmission lines for Rs 1,913 crore.

Essar Power Transmission Company has 465-km transmission lines across three Indian states. The asset transacted is an operational 400 kV inter-state transmission line linking Mahan to Sipat pooling substation. The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework.

In a statement, Essar Power said it “has entered into a definitive agreement with Adani Transmission Ltd to sell one of its two transmission lines for Rs 1,913 crore”.

In the last three years, Essar Power has reduced its debt from a peak level of around Rs 30,000 crore to Rs 6,000 crore. It has also 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 framework.

Essar Power has a current power generating capacity of 2,070 MW across four plants in India and Canada. It is one of India’s first private sector independent power producers.

Adani Transmission MD & CEO Anil Sardana said in a statement: “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 km 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.”

With this acquisition, the cumulative network of ATL will reach 19,468 ckt km, out of which 14,952 ckt km is operational and 4,516 ckt km is under various stages of execution.