India-based power company Adani Transmission (ATL) has entered definitive agreements with Essar Power (EPL) to acquire an interstate transmission project in India for Rs19.13bn ($246.4m).
ATL will acquire an operational 400kV interstate transmission line connecting Mahan in the state of Madhya Pradesh with the Sipat pooling substation in the state of Chhattisgarh.
The project was commissioned in 2018 and has a line length of 673 circuit kilometres (ckt kms). It is operated by Essar Power Transmission (EPTCL), a unit of EPL.
The acquisition is intended to support ATL’s growth by increasing its cumulative network to 19,468 ckt kms, which includes 4,516 ckt kms in different stages of construction.
In addition, the expansion of its operations will help the company derive synergies in terms of operation and maintenance (O&M) cost optimisation and shared resources.
ATL managing director and CEO Anil Sardana said: “The acquisition of Essar’s transmission asset will consolidate ATL’s presence in central India.
“With this acquisition, ATL is well on path to achieve its 20,000 ckt kms target before time.
“We continue to remain at the forefront of grid stability and provide sustainable, reliable and affordable energy solutions while creating long term sustainable value for our stakeholders.”
The transaction will be carried out in steps that will be subject to necessary regulatory approvals and other consents.
ATL is the transmission and distribution business arm of Adani Portfolio and is currently India’s largest private-sector transmission and distribution company.
Besides its transmission network, the company operates a distribution business that serves nearly 12 million residents of Mumbai.
Last month, a subsidiary of Adani Green Energy (AGEL) commissioned a 390MW hybrid power generation plant in the Indian state of Rajasthan.
The facility is located in Jaisalmer and understood to be India’s first wind-solar hybrid power plant.