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Adani Energy Buys Essar’s Mahan-Sipat Transmission

After receiving the required approvals, Adani Energy Solutions Ltd. (AESL) purchased a 100% stake in Essar Transco Limited for an enterprise value of INR 1,900 crore. The agreements signed in June 2022 are being followed by this share purchase.

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According to a statement from Adani Energy Solutions, the acquisition includes the 400 kV, 673 circuit kilometre fully operational inter-state transmission line that connects Mahan, Madhya Pradesh, to the Sipat pooling substation in Chhattisgarh.

The project, which operates under the Central Electricity Regulatory Commission-regulated return framework, was commissioned in 2018.

Adani Energy Solutions completed the acquisition through its wholly owned subsidiary Adani Transmission Step-Two Limited (ATSTL).

The statement said ATSTL raised a financing at the most competitive terms. “This establishes a new benchmark for AESL to raise capital and unlocks the lower cost debt for its operational assets. The financing exemplifies the quality of AESL’s utility cashflows with a long-term license life, well supported through stable regulatory framework. MUFG Bank Ltd. is the sole lender for the financing,” it said.

The statement added that this acquisition will consolidate Adani Energy Solutions’ presence in central India. “The acquisition is consistent with the AESL’s philosophy of augmenting its existing capacities and bringing in efficiency through operational synergies and creating network effect. Along with a robust energy demand, the ability to recognize and tap market opportunities within the areas of interest continues to propel and position AESL at the forefront of energy transition in India,” it added.

Adani Energy Solutions is the country’s largest private transmission company with a presence across 17 states of India and a cumulative transmission network of 21,182 circuit kilometre and 57,011 MVA transformation capacity. “In its distribution business, AESL serves more than 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. AESL is ramping up its smart metering business and is on course to become India’s leading smart metering integrator with an order book of over 22.8 million meters.” the statement said, adding that it is a “catalyst for transforming the energy landscape in the most reliable, affordable, and sustainable way”.

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