Adani Transmission To Buy Reliance Infra’s Mumbai Power Biz For $1.9 Bn
Adani Transmission To Buy Reliance Infra’s Mumbai Power Biz For $1.9 Bn

Reliance Infrastructure Ltd has signed a pact with Adani Transmission Ltd to sell its Mumbai power business which includes generation, transmission and distribution of power for the city.

The Mumbai power business has about 29.7 lakh customers and involves distribution of 1,892 megawatt of power. Its power generation business includes the 500 megawatt Dahanu thermal station. It has over 540 circuit km of transmission lines.

The transaction will mark Adani Transmission’s entry into the power distribution sector and increase the company’s footprint in the power transmission space.

Gautam Adani, chairman of Adani Group said “The acquisition marks our foray in the distribution sector in India. We see a massive growth opportunity and will look at both organic and inorganic opportunities. With this acquisition, Adani Transmission will enjoy the benefit of scale and of being an integrated distribution and transmission business in India. Reliance Infrastructure will use the proceeds of the transaction to reduce its debt. It will focus on upcoming opportunities in engineering, procurement and construction (EPC) and defence businesses.”

Adani Transmission is part of the Adani group. It is the largest power transmission company in the private sector and owns and operates around 5,450 circuit km of transmission lines, according to its annual report. In 2016-17, the company posted consolidated revenues of Rs 2,901.55 crore.

In December last year, the firm agreed to sell its power transmission assets in the western region to Adani Transmission at an enterprise value of Rs 1,000 crore ($148 million).

Reliance Infrastructure posted consolidated revenue of Rs 27,036.47 crore for 2016-17. Its Mumbai power distribution business registered revenue of Rs 7,532 crore.

 
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