Adani Transmission Ltd, part of the Adani Group, announced that it has acquired Reliance Infrastructure’s integrated business of generation, transmission and retail electricity distribution. The deal is worth Rs.18,800 crore, and was in the making since December 2017.
The newly-acquired business will be housed in a new entity Adani Electricity Mumbai Ltd
The acquisition shall be housed in a new entity Adani Electricity Mumbai Ltd, a subsidiary of Adani Transmission Ltd (ATL). It will serve over 3 million customers spread across 400 sq km in the city of Mumbai. This acquisition marks the firm’s foray into the large scale electricity distribution.
Adani Transmission Ltd will continue to be the largest private sector electricity transmission and distribution company in the country.
Speaking on the development, Gautam Adani, Chairman, Adani Group said, “I am delighted to announce our significant launch into large scale city electricity distribution business and are privileged to serve over 3 million consumers in the city of Mumbai. We aspire to enter into electricity distribution business in key cities and districts in India in pursuit of Government of India’s Vision to enable “Power for all by 2020”.
The integrated business includes the power generation units based at Dahanu, power transmission network across Mumbai and Maharashtra and the retail power distribution network in Mumbai suburbs. ATL will have 35 grid substations with approximately 19,300 MVA of transformation capacity across the country, by the end of 2018.
Business operations at AEML post-acquisition will continue to function seamlessly with the absorption of about 5,000 existing employees across three business areas.
Adani Transmission Ltd, the holding company of Adani Electricity Mumbai Ltd, has a cumulative transmission network of 12,540 ckm, out of which some 9,201 ckm is operational. This in turn includes 3280 ckm under various stages of construction.
Impact on RInfra
For Anil Ambani-controlled Reliance Infrastructure, this deal with see the company’s debt pared by two-thirds to Rs.7,500 crore. This is believed to be the biggest debt restructuring deal in India’s corporate sector.
(Featured photograph is for illustration only)
