Adani acquires stakes in GMR Energy's two transmission companies

Adani Transmission Ltd (ATL), the largest private power transmission company operating in India, has signed definitive agreement with GMR Energy Ltd (GEL) to acquire 74 percent stake in Maru Transmission Service Company Limited (MTSCL) and 49 percent stake in Aravali Transmission Service Company Limited (ATSCL) with an option to acquire remaining stake in future. 

The equity consideration ascribed for the transaction involving both the projects is Rs 100 crore. The total value realisable for GMR Energy could be Rs 220 crore considering this equity consideration and the expected upside of upto Rs 120 crore from regulatory proceeds of various appeals of the assets before the APTEL. Post consummation of the above transaction, the consolidated debt of GMR Group would be reduced. The total debt in the projects as on March 31, 2016 is approximately Rs 324 crore.

Aravali Transmission Service operates 400 KV S/C Hinduan-Alwar transmission line (96 km) and 2X315 MVA, 400/220 KV grid substation at Alwar and other associated works in Rajasthan. The project was awarded on BOOM basis & commissioned in July, 2014 and since then has been in successful operation. 

Maru Transmission Service operates 400 KV S/C Bikaner-Deedwana Transmission Line which is approximately 129 km long; 400 KV S/C Ajmer-Deedwana Transmission Line of 106 km; 220 KV D/C Sujangarh-Deedwana Transmission Line of 30 km and 2X315 MVA, 400/220 KV grid sub-station at Deedwana and other associated works in Rajasthan. The project was commissioned in December, 2013 and since then has been in successful operation.

Both the assets are operating at an average availability of more than 99.90% since COD. These assets were awarded through a tariff based competitive bidding process with license period of 25 years, further extendable by 10 years. Adani Transmission is developing another transmission line from Suratgarh to Bikaner in Rajasthan, in close proximity to these assets. 

“Adani Transmission Ltd is foreseeing significant growth in the transmission sector and expects to maintain its leadership position in the country. This acquisition is in sync with the long term strategy of ATL wherein, we are always looking to create value for our stakeholders,” said Gautam Adani, chairman of Adani Group.