Adani Transmission Ltd has announced that it has signed a binding share purchase agreement with Reliance Infrastructure Ltd (RInfra) to fully acquire the latter’s integrated power business in Mumbai. The deal, valued at Rs.13,251 crore plus working capital, is subject to regulatory approvals.
With the deal, Adani Transmission now will mark its presence in the power distribution business—adding substantial value to its power-related businesses that span coal mining, power generation and transmission.
The Mumbai power business of RInfra is vested with a wholly-owned subsidiary Reliance Electricity Generation & Supply Ltd. The integrated power business includes 500 mw of coal-based power generation capacity, over 540 ckm of transmission lines and around 1,900 mw of power distribution activity to around 3 million customers. The power generation facility is represented by the 500-mw (two units of 250-mw each) Dahanu coal-fired power plant located in Palghar district of Maharashtra.
Despite selling of its Mumbai power distribution business, RInfra will continue to remain in the power distribution business with its two companies BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, which are power distribution licencees in Delhi. Both are joint ventures between Reliance Infrastructure and Government of National Capital Territory (NCT).
Second deal
This is the second deal between Adani Transmission and RInfra. In October this year, the two companies signed a binding term sheet agreement for RInfra’s three operational transmission projects, namely WRSSS-B, WRSSS-C and Parbati Koldam Transmission Company Ltd (PKTCL). WRSS (Western Region System Strengthening Scheme) spans states like Maharashtra, Gujarat, Madhya Pradesh and Karnataka. Parbati Koldam Transmission Company is a 74:26 joint venture between Reliance Infrastructure and Power Grid Corporation of India Ltd. Under this transaction, Adani Transmission would acquire 100 per cent ownership in WRSSS B & C and 74 per cent ownership in PKTCL.
(Featured image is a file photograph of a GIS substation in the Mumbai power distribution area of RInfra)
