Power sector's first InvIT IndiGrid to acquire 4 more projects

IndiGrid reports revenue of Rs 40.57 cr

The power sector’s first ‘Infrastructure Investment Trust (InvIT)’ IndiGrid, which was floated to own transmission assets across the country, would acquire four more projects of its sponsor– Sterlite Power Grid Ventures Limited.

IndiGrid currently owns two assets of Sterlite– the Jabalpur Transmission Company Limited and the Bhopal Dhule Transmission Company Limited.

In a public statement, IndiGrid said: “The Sponsor has issued an “Invitation to Offer” to IndiGrid for potential acquisition of four of its interstate power transmission projects under ROFO (Right of First Offer) deed as disclosed in the Offer Document.”

It said these assets have a combined revenue of around Rs 300 crore and have the same contractual framework as the initial portfolio assets. “The Board has authorised the management of IndiGrid to proceed with due diligence on these assets,” said the statement.

The four projects are- the East-North Interconnection Company Limite, the Purulia & Kharagpur Transmission Company Limited, the RAPP Transmission Company Limited and the Maheshwaram Transmission Limited. Of these, except Maheshwaram, all other assets are commissioned.

In its latest result, IndiGrid reported revenue of Rs 40.57 crore and net distributable cash flow of Rs 25.77 crore. These numbers pertain only to the one-month period starting from asset transfer date of May 30, 2017 up until June 30, 2017.

IndiGrid also announced its first distribution of Rs 0.92 per unit to unit holders. The record date for this distribution shall be August 4, 2017. This distribution will be paid as interest to unit holders. It will also amend the Distribution Policy and adopt a quarterly distribution instead of semi-annual distribution, said the statement.