Power transmission and retail distribution company Adani Transmission Limited (ATL) has signed definitive agreements with Essel Infraprojects Limited (EIL) for the acquisition of Warora-Kurnool Transmission Limited (WKTL) for an enterprise value of Rs 3,370 crore.
The regulatory approval for substitution of the original awardee in the contract by Adani Transmission has already been received from Central Electricity Regulatory Commission. The lenderâ€™s consent and other necessary regulatory approvals shall be obtained before the closure of the transaction.
In a statement on Saturday, Adani Transmission said that the acquisition is in sync with its strategy to enhance the value for its stakeholders, through organic as well as inorganic opportunities.
With this acquisition, the cumulative network of ATL will reach 17,200 ckt km (circuit kilometre), out of which 12,350 ckt km is already operational and 4,850 ckt km (including this asset) is in various stages of execution.
It said that with this enhanced scale of operations, ATL will enjoy substantial benefits in terms of cost optimisation and shared resources and will also fortify its position of being the largest private sector transmission company in the country.
Anil Sardana, Managing Director and Chief Executive Officer, Adani Transmission Ltd said: "The acquisition of WKTL will bolster ATL's pan-India presence, consolidating further its position as the largest private-sector transmission company in India. This strategic West to South 765 KV (Kilovolt) interconnector with Substation in Southern India, completes ATL presence in all regions of the country."
"This asset will not only increase ATL's size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022. The acquisition is a further demonstration of ATL's drive towards differentiated capability through inorganic growth, successful integration & making such assets value accretive, for long term sustainable value creation for its stakeholders," Sardana added.
Warora-Kurnool Transmission Ltd will develop, operate and maintain transmission lines aggregating to 1,750 ckt km. The 765 kV inter-state transmission line links Warora-Warangal and Chilakaluripeta-Hyderabad-Kurnool with a 765/400 kV new sub-station at Warangal. The project was awarded through a competitive bidding process on a build, own, operate, maintain basis.