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Adani buys transmission assets of Reliance Infrastructure in India

EBR Staff Writer Published 02 November 2017

Adani Transmission (ATL) has completed its INR10bn ($150m) acquisition of the transmission assets of Reliance Infrastructure (RInfra) in India.

The acquisition by ATL is said to be in line with its strategy to improve the value for its stakeholders, by organic and inorganic growth means.

RInfra plans to use the entire proceeds from the transaction for reducing its debt.

Through the transaction signed in October 2016, ATL has acquired 100% stake of Western Region Transmission Maharashtra (WRTM) and Western Region Transmission Gujarat (WRTG).

The WRTM transmission project is made up of 2089ckt-km of transmission lines. On the other hand, the WRTG transmission project features 974ckt-km of transmission lines.

With the acquisition, the private power transmission company has taken its operational transmission lines to 8500ckt kms.

Overall, ATL’s cumulative network is set to grow to 11350ckt kms with the added assets. The company’s assets also include 28 substations with over 16,200MVA of transformation capacity across India.

ATL, in a statement, said: “With this scale of operations, ATL will enjoy substantial benefits of scale in terms of cost optimization, shared resources and will fortify its position of being the largest private sector transmission company in the Country.”

The company has also recently entered into a period of exclusivity with RInfra in connection with the acquisition of the integrated business of the latter’s generation, transmission, distribution and retail of electricity for Mumbai. The exclusivity period is set to expire on 15 January 2018.

ATL believes that the proposed acquisition will bolster its presence in the power transmission sector and also marks its entry into the electricity distribution space.