Adani Energy Solutions Acquires Essar’s Mahan-Sipat Transmission Project for INR 1,900 Crore

GG News Bureau
New Delhi, 16th May. Adani Energy Solutions Ltd (AESL) has completed the acquisition of a 100 percent stake in Essar Transco Limited, following the necessary clearances. The deal, valued at an enterprise value of INR 1,900 crore, was finalized after agreements were signed in June 2022.

The acquisition includes the fully operational 400 kV, 673 circuit kilometres inter-state transmission line that connects Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh. The project, commissioned in 2018, operates under the Central Electricity Regulatory Commission-regulated return framework.

Adani Energy Solutions executed the acquisition through its wholly owned subsidiary, Adani Transmission Step-Two Limited (ATSTL). In its statement, AESL noted that ATSTL secured financing on highly competitive terms, setting a new benchmark for raising capital. “This financing exemplifies the quality of AESL’s utility cash flows with a long-term license life, well-supported through a stable regulatory framework,” the statement said. MUFG Bank Ltd. acted as the sole lender for the financing.

The acquisition is expected to consolidate Adani Energy Solutions’ presence in central India, enhancing its capacity and efficiency through operational synergies. AESL emphasized that this move aligns with their strategy of augmenting existing capacities and seizing market opportunities, reinforcing their position at the forefront of India’s energy transition.

Adani Energy Solutions is the largest private transmission company in India, with a presence in 17 states, managing a transmission network of 21,182 circuit kilometres and a transformation capacity of 57,011 MVA. In its distribution business, AESL serves over 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. The company is also expanding its smart metering business, aiming to become India’s leading smart metering integrator with an order book of over 22.8 million meters.

AESL continues to position itself as a catalyst for transforming India’s energy landscape in a reliable, affordable, and sustainable manner.