India Grid Trust (IndiGrid) has completed its largest transmission project deal by acquiring NER-II Transmission Ltd (“NER-II”) from Sterlite Power at an enterprise value of around Rs.4,625 crore.
IndiGrid AUM reaches Rs.20,000 crore
With this acquisition, IndiGrid’s assets under management (AUM) have increased by 34 per cent to around Rs.20,000 crore. The platform’s asset portfolio now consists of 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 ckm and 13,350 MVA in 17 Indian states and 1 Union Territory.
Framework Agreement
The acquisition of NER-II was envisaged as part of the Framework Agreement signed with Sterlite Power in April 2019. The Investment Manager of IndiGrid had signed a definitive share purchase agreement for the acquisition of NER-II on March 5, 2021.
On March 2, 2021, T&D India had reported that IndiGrid was set to acquire NER-II Transmission from Sterlite Power (read more)
Spanning three NE states
NER-II is part of Inter State Transmission Scheme (ISTS) network and was awarded on BOOM basis with a contractual period of 35 years. The project has 11 elements including two substations of 1,260 MVA capacity and four transmission lines extending over 830 km. The asset spans across Assam, Arunachal Pradesh and Tripura and is of strategic importance for the delivery of power in one of the toughest regions in the country.
A transformational year
Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said: “I am pleased to share that we have concluded one of the largest acquisitions in the Indian power transmission landscape within a short period of time from signing definitive agreements. FY21 has been a transformational year for IndiGrid with Rs.7,500-crore acquisitions across Inter-State transmission, Intra-State transmission, and regulated tariff transmission projects as well as our first solar project.
Also read:Powergrid InvIT: Five Assets Identified For Monetization
Tenth asset transfer
Commenting on the transaction, Pratik Agarwal, Managing Director, Sterlite Power, said, “We are delighted to have successfully closed the sale of NER-II to India Grid Trust. This marks our tenth successful asset transfer, in under 4 years. This mega project will bring reliable power to 5.3 crore people in India’s northeast region. The transaction is another validation of our pioneering equity recycling model and our ability to garner tremendous investor interest in our transmission assets.”
(Featured photograph shows a project element of NER-II Transmission Ltd)
