GMR to sell two transmission projects to Adani for Rs.100 crore

Industry:    2016-07-05

Ahmedabad/New Delhi: Bengaluru-based GMR Infrastructure Ltd (GIL) said on Friday it has agreed to sell substantial stakes in two transmission projects to Adani Transmission Ltd (ATL), part of the Adani Group, for Rs.100 crore.

The deal covers the sale of a 74% stake in Maru Transmission Services Ltd (MTSL) and 49% in Aravali Transmission Services Ltd (ATSL). Both firms held through the subsidiary, GMR Energy Ltd (GEL), are engaged in building transmission networks in Rajasthan.

Besides the direct proceeds from the sale, GMR retains the right to receive up to Rs.120 crore from regulatory proceeds of various appeals pending before the Appellate Tribunal for Electricity relating to transmission charges disputed by Rajasthan state power distribution companies.

“Adani Transmission Ltd is foreseeing significant growth in the transmission sector and expects to maintain its leadership position in the country. This acquisition is in sync with the long-term strategy of ATL, wherein we are always looking to create value for our stakeholders,” Gautam Adani, chairman of Adani Group, said.

GMR Infrastructure said in a statement that the deal offers the buyer the option of acquiring the remaining stake in both projects.

In a separate development, Adani Enterprises Ltd plans to build a copper smelter with an eye to furthering its ambitions in the solar sector, said a person familiar with the plan.

The firm recently sought environmental approval to set up a 1-million-tonne-per-year copper smelter in Gujarat, according to an application submitted by the company which was reviewed early this month by the environment ministry. The smelter is expected to cost Rs.10,000 crore ($1.47 billion) and will source copper concentrate through imports, the application stated, without providing the reasoning behind the new venture.

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