Adani Transmission Ltd (ATL), the largest private power transmission company operating in India, announced on Wednesday the signing of Binding Term Sheet with Anil Ambani’s Reliance Infrastructure Ltd. (RInfra) to acquire the latter’s mega inter-state operational transmission assets. The acquisition has been done in a manner consistent with Transmission Service Agreement and subject to Statutory and Regulatory Approvals/Consents, the company said in a statement.
The acquisition includes picking of 100% of Reliance Infra’s stake inWestern Region Strengthening System Scheme B (WRSSS B) of around 2089 ckt kms, 100% stake of Western Region Strengthening System Scheme C (WRSSS of around 974 ckt kms and 74% shares of R-Infra in Parbati Koldam Transmission Company Limited (PKTCL).
“Adani Transmission Ltd. has grown its wings in transmission sector with a commitment to maintain its leadership position in the transmission sector of the country. With this acquisition, ATL will enjoy substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth,” said Gautam Adani, Chairman of Adani Group.
Adani Transmission Ltd, part of the $12 billion Adani Group, is one of the largest private sector transmission companies in India with more than 7,000 circuit kms of transmission lines across Western, Northern and Central regions of India. The company was listed last year on the National Stock Exchange and Bombay Stock Exchange as a separate entity.
This acquisition is expected to be completed in current financial year and subject to due diligence, definitive documentation, applicable regulatory approvals and certain other conditions.
PKTCL is a joint venture between R-Infra and Power Grid Corporation of India Limited (“PGCIL”). R-Infra holds 74% equity stake and PGCIL holds 26% equity stake in the Company – around 458 ckt kms.
All the assets are operating at an average availability of more than 99.50% since COD.
|· Adani Transmission Ltd (ATL) signs Binding Term Sheet with Reliance Infrastructure Ltd. (RInfra).|
|·To surpass 10000 ckt kms on completion of acquisition of Reliance Infra’s OPERATIONAL Transmission Assets.|
|· To be completed in current financial year.|
|· All the assets are operating at an average availability of more than 99.50% since COD.|
Brief Overview of the Assets:
Western Region Strengthening System Scheme B (WRSSS B) project comprises of 2089 Ckt-km transmission lines – 400 kV D/C Pune – Aurangabad, 400 kV D/C Solapur – Kolhapur, 400 kV D/C Solapur – Parli, 400 kV D/C Parli – Pune, LILO of Sholapur – Karad 400 kV D/C T/L at Solapur, LILO of 400 KV Lonikhand – Kalwa Ckt I, LILO of 400 KV Lonikhand – Kalwa Ckt II and associated assets. The project was awarded through competitive bidding process and commissioned in January, 2014 and since then has been in successful operation.
Western Region Strengthening System Scheme C (WRSSS C) project comprises of 974 Ckt-km transmission lines – 400 kV D/C Limbdi –Vadavi, 400 kV D/C Vadavi-Kansari, 400 kV D/C Rajgarh – Karamsad and associated assets. The project was awarded through competitive bidding process and commissioned in December, 2015 and since then has been in successful operation.
Parbati Koldam Transmission Company Limited (PKTCL) operates total assets of 458 Ckt-km of transmission lines comprising, 400 kV S/C Banala – Parbati II, 400 kV S/C Parbati II – Parbati III, 400 kV S/C Banala – Koldam Ckt I, 400 kV S/C Banala – Koldam Ckt II, 400 kV D/C Koldam – Ludhiana and other associated assets. The project was awarded on Cost plus basis and commissioned in November, 2015 and since then has been in successful operation.
Adani Transmission Ltd. is the largest power transmission company operating in the private sector in India and owns, operate and maintain around 5,000 Ckt Kms of transmission lines ranging from 400 KV to 765 KV, with a total transformation capacity of more than 12,000 MVA.
ATL has four fully operational Transmission Systems that primarily serve the Northern and Western regions of India and is also constructing additional projects of around 1900 Ckt Kms in Rajasthan, Chhattisgarh, Madhya Pradesh, Maharashtra, Jharkhand & Bihar, which were awarded through Tariff Based Competitive Bidding process.
Recently, ATL has also entered into Definitive Agreement with GMR Energy Ltd. to acquire Maru Transmission Service Company Limited (MTSCL) and Aravali Transmission Service Company Limited (ATSCL).
With completion of all ongoing projects and acquisition of MTSCL and ATSCL along with this deal, the network of ATL is expected to increase from around 5000 Ckt Kms to 10800 Ckt Kms and expected to expand its transmission network in the state of Punjab, Himachal Pradesh and Karnataka.