Adani Transmission Ltd (ATL) has signed definitive agreements with Essel InfraProjects Ltd for the acquisition of Warora-Kurnool Transmission Ltd (WKTL). The acquisition is valued at Rs.3,370 crore.
The proposed acquisition will take ATL’s power transmission portfolio to around 17,200 ckm.
Approvals
The regulatory approval for substitution of original awardee in the contract by ATL has already been received from Central Electricity Regulatory Commission. The lenders consent and other necessary regulatory approvals shall be obtained before closure of transaction.
Rationale
The acquisition is in line with ATL’s strategy to enhance the value for its stakeholders, through organic as well as inorganic opportunities, a release from ATL said.
Impact on ATL’s portfolio
With this acquisition, the cumulative network of ATL will reach around 17,200 ckm, out of which 12,350 ckm is already operational and 4,850 ckm (including WKTL under acquisition) is in various stages of execution. “With this enhanced scale of operations, ATL will enjoy substantial benefits in terms of cost optimisation and shared resources and will also fortify its position of being the largest private sector transmission company in the country,” the Adani Transmission release said.
Bolstering pan-India presence
Anil Sardana, MD & CEO, Adani Transmission Ltd, said, “The acquisition of WKTL will bolster ATL’s pan-India presence, consolidating further its position as the largest private sector transmission company in India. This strategic West to South 765kV interconnector with substation in Southern India, completes ATL presence in all regions of the country. This asset will also take ATL closer to its target of setting up 20,000 ckm of transmission lines by 2022. The acquisition is a further demonstration of ATL’s drive towards differentiated capability through inorganic growth, successful integration & making such assets value accretive, for long term sustainable value creation for its stakeholders.”
Project Details
Warora-Kurnool Transmission Ltd will develop, operate and maintain transmission lines aggregating to 1,750 ckm across Maharashtra, Telangana and Andhra Pradesh. The 765kV inter-state transmission line links Warora–Warangal and Chilakaluripeta-Hyderabad–Kurnool with a new 765/400kV substation at Warangal. The project was awarded through competitive bidding process on a build, own, operate, maintain basis.
Current Project Status
According to information available from Central Electricity Authority, the Warora-Kurnool transmission scheme is currently under implementation but there have been project delays. When the project was awarded to Essel Infraprojects in around July 2016, the envisaged completion date was November 2019. However, the project is now targeted for completion by March 2022. The project was severely impeded by right of way issues in coal-bearing areas of Western Coalfields Ltd and Singareni Coal Collieries Ltd. It is further learnt that a joint meeting between all stakeholders was held in January 2020, and it was decided that the project developer (WKTL) will complete the balance works—mainly 16 towers in the disputed coal-bearing areas—without further delay.
(Featured photograph for illustration only)
