Essar Power to sell transmission line to Adani for Rs 1913 crore
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 of transmission lines in three Indian states. The assets dealt with is the 400 kV inter-state transmission line connecting Mahan with Sipat Pooling Substation. The project works under the Central Electricity Regulatory Commission (CERC) regulated return framework.
Essar Power in a statement 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 of around Rs 30,000 crore to Rs 6,000 crore. It is also in the process of building a green balance sheet around renewable energy, in line with its strategy of investing in future-focused businesses that deliver superior rates of return within the ESG framework.
Kush S, CEO, Essar Power, said, “With this transaction, Essar Power is rebalancing its power portfolio with the twin objective of de-linking its balance sheet and investing in green and renewable energy, thereby driving its ESG-oriented future. to further its development.”
Essar Power has a current power generation capacity of 2,070 MW across four plants in India and Canada. It is one of the first private sector independent power producers in India.
Anil Sardana, MD & CEO, Adani Transmission said in a statement, “The acquisition of Essar’s transmission assets will strengthen ATL’s presence in central India. With this acquisition, ATL is on course to achieve its 20,000 ckt km target ahead of time. We remain at the forefront of grid sustainability and provide sustainable, reliable and affordable energy solutions while creating long-term sustainable value for our stakeholders.
With this acquisition, ATL’s cumulative network 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.