Mumbai: Adani GroupIndia’s third most valuable conglomerate has agreed to buy Essar Power’s transmission business in central India for Rs 1,913 crore. The deal will strengthen Adani’s presence in central India, while it will mark Essar’s exit from the power transmission business.
The asset transacted is an operational 400kv transmission line connecting Mahan in Madhya Pradesh with Sipat Pooling Substation in Chhattisgarh. Essar Power will use the sale proceeds to reduce its debt, which stands at Rs 6,000 crore. Its debt was at a peak level of Rs 30,000 crore three years ago.
For Adani, the acquisition is in line with its strategy of inorganic growth and will expand the network Adani Transmission (through which the Ahmedabad-based group has signed the agreement) 19,468 Circuit Kilometers (CKM). Out of this, 14,952 CKM is operational, while the remaining 4,516 CKM is under various stages of execution.
group led by gautam adani, is taking aggressive M&A steps in energy, building materials and travel services, among other sectors. It announced the purchase of holsim cement unit of india, Kohinoor Basmati Rice brand and softbankGreen Energy Portfolio.
Essar Group, on the other hand, is disinvesting its assets, including commercial assets and refineries, to reduce its liabilities and focus on environmental, social and governance (ESG) oriented future growth. Essar Power CEO said, “With this transaction (sale of transmission line), Essar is rebalancing its power portfolio with the twin objective of clearing its balance sheet and investing in green and renewable energy.” kush so,
The company has a current power generation capacity of 2,070MW across four plants in India and Canada. Essar Power is in the process of building a green balance sheet around renewable energy, in line with the group’s strategy to invest in future-focused businesses, which are better placed within the ESG framework, a group statement said. gives the rate.
The asset transacted is an operational 400kv transmission line connecting Mahan in Madhya Pradesh with Sipat Pooling Substation in Chhattisgarh. Essar Power will use the sale proceeds to reduce its debt, which stands at Rs 6,000 crore. Its debt was at a peak level of Rs 30,000 crore three years ago.
For Adani, the acquisition is in line with its strategy of inorganic growth and will expand the network Adani Transmission (through which the Ahmedabad-based group has signed the agreement) 19,468 Circuit Kilometers (CKM). Out of this, 14,952 CKM is operational, while the remaining 4,516 CKM is under various stages of execution.
group led by gautam adani, is taking aggressive M&A steps in energy, building materials and travel services, among other sectors. It announced the purchase of holsim cement unit of india, Kohinoor Basmati Rice brand and softbankGreen Energy Portfolio.
Essar Group, on the other hand, is disinvesting its assets, including commercial assets and refineries, to reduce its liabilities and focus on environmental, social and governance (ESG) oriented future growth. Essar Power CEO said, “With this transaction (sale of transmission line), Essar is rebalancing its power portfolio with the twin objective of clearing its balance sheet and investing in green and renewable energy.” kush so,
The company has a current power generation capacity of 2,070MW across four plants in India and Canada. Essar Power is in the process of building a green balance sheet around renewable energy, in line with the group’s strategy to invest in future-focused businesses, which are better placed within the ESG framework, a group statement said. gives the rate.