Adani Transmission has signed an agreement to buy a power transmission project for an enterprise value of Rs 1,286 crore from Kalpataru Power Transmission, the two companies said on Monday. Adani Transmission will acquire the Alipurduar Transmission project, which is a part of the power transmission network between hydropower projects in Bhutan and India. This is the second project that Kalpataru Power Transmission has sold in the last two months.
“The acquisition of Alipurduar Transmission will bolster the pan-India presence of ATL consolidating its position as the largest private sector transmission company in India. This asset will take ATL closer to its target of setting up 20,000 circuit km of transmission lines by 2022,” said Anil Sardana, managing director and chief executive officer of Adani Transmission.
The Gautam Adani-led company will have a network of 15,400 circuit km, of which more than 12,200 circuit kms, including this asset, are operational. The company plans to scale up its network through organic as well as inorganic growth, with the aim to benefit from cost optimization and shared resources.
Alipurduar Transmission was set up as part of an inter-state transmission system for strengthening and transferring of power from new hydroelectric power projects in Bhutan to India. The project involved design, financing, construction, commissioning, operation and maintenance of 325 kms of 400 KV transmission line. The deal is subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction and also subject to requisite approvals and compliances.
This is the second sale of assets for Kalpataru Power Transmission in less than two months. The company has now sold all its power transmission and distribution assets, as a part of its strategy to be asset light and focus on contract based jobs.
Kalpataru Power Transmission’s MD and CEO Manish Mohnot said, “We now have agreements in place for all our T&D assets i.e. ATL, Kohima and Jhajjar transmission assets. In FY19-20, we have already completed sale and transfer of the Satpura transmission asset. We are now targeting to complete the sale and transfer of all balance T&D assets in FY20-21. The sale of T&D assets is a pivotal step in accelerating KPTL’s growth strategy in the global EPC market and a major step towards enhancing shareholder value.”
Source: Economic Times