Electricity: Essar Power inks deal with the Adanis to sell transmission asset

Mumbai: Essar Power Ltd, India’s first private sector independent power producer, said on Friday it has entered into a definitive agreement with Adani Transmission Ltd (ATL) to sell one of its two transmission lines for Rs 1,913 crore.

Essar Power Transmission Company Ltd (EPTCL) has 465-km-long transmission lines across three Indian states. The asset transacted is an operational 400 kV inter-state transmission line linking Mahan (Madhya Pradesh) to the Sipat (Chhattisgarh) pooling substation. The project operates under the CERC regulated return framework.

During the last three years, Essar Power has reduced its debt from a peak level of approximately Rs 30,000 crore to Rs 6,000 crore. Alongside this, it is curating a green balance sheet around renewable energy in line with Essar’s strategy of investing in future-centric businesses which give a superior rate of return within the environmental, social, and governance (ESG) framework, the company said in a statement.

Kush S, the CEO, said, “With this transaction, Essar Power is rebalancing its power portfolio with the twin aim of deleveraging its balance sheets and investing in green and renewable power, furthering its ESG-oriented future growth.”

Essar Power is one of India’s first private sector independent power producers, with a power-generating capacity of 2070 MW across four plants in India and Canada. It is transitioning towards decarbonization by building businesses in the renewable energy sector.

(VP)