Adani Energy Solutions (AESL), part of Indian billionaire Gautam Adani's conglomerate, has completed the acquisition of a 100% stake in Essar Transco.
The transaction, valued at Rs19bn ($227.5m), has been concluded after securing all necessary regulatory approvals.
This strategic move follows initial agreements made in June 2022.
The acquisition includes a fully operational 400kV, 673ckm inter-state transmission line linking Mahan in the state of Madhya Pradesh to Sipat pooling substation in the state of Chhattisgarh.
The project, which operates under the Central Electricity Regulatory Commission's regulated return framework, was commissioned in 2018.
The purchase was executed through AESL's wholly owned subsidiary, Adani Transmission Step-Two (ATSTL).
The acquisition is expected to enhance AESL's footprint in central India. The company now boasts four operational assets in the region, covering 3,373ckm.
This expansion aligns with the company’s strategy to grow its capacities and leverage operational synergies for increased efficiency.
In a statement, the company said: “In accordance with AESL’s capital management philosophy, ATSTL also 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.”
In October last year, AESL commissioned the 2.5GW Karur Transmission project. This initiative is designed to transmit renewable energy from the Karur/Tiruppur wind zone in Tamil Nadu.
It includes a 400/230kV, 1,000MVA pooling station and a line in line out (LILO) from the 440kV Pugalur high-voltage direct current transmission line, extending 8.51ckm.
AESL is considered to be one of the largest private transmission companies in India, with a network spanning 17 states.
AESL's transmission network totals 21,182ckm, including 18,109ckm already operational and 3,073ckm under development. Its transformation capacity stands at 57,011 megavolt amp (MVA). In its distribution sector, AESL serves over 12 million consumers across Mumbai and Mundra SEZ.
