A subsidiary of the Qatar Investment Authority (QIA) has signed a definitive agreement with India’s Adani Transmission (ATL) and Adani Electricity Mumbai (AEML). QIA will acquire 25% stake in AEML for approximately $450m.
AEML holds licence for power generation, transmission and distribution business, and currently serves more than three million consumers across in the Indian city of Mumbai.
AEML holds around 87% of the market share of Mumbai by licence area, and serves 67% of the consumers and supplies 55% of the electricity in the region.
Adani Group chairman Gautam Adani said: “We are delighted to embark on this partnership with the Qatar Investment Authority.
“Together, we will continue to work towards improving the reliability of supply and consumer satisfaction for over three million AEML consumers served in Mumbai. We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long term partnership with QIA.”
By 2023, ATL and QIA have agreed to ensure more than 30% of AEML electricity supply is from renewable energy sources including solar and wind power plants.
Additionally, the companies will focus on new green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.
QIA CEO Mansoor Al-Mahmoud said: “We believe that Adani Electricity Mumbai is the best-in-class electricity utility in India and has tremendous potential for growth.
“We look forward to a long term partnership with the Adani Group, with whom we share an inter-generational perspective on investments and a common vision for the sustainable growth and continued success of AEML.
“This investment demonstrates our confidence in India, with whom Qatar shares deep-rooted ties and excellent relations.”
Completion of the deal is dependent on customary and regulatory approvals and expected to complete by early 2020.