Adani Transmission acquires 2 GMR transmission projects
02 July 2016
Adani Transmission, the country's largest private power transmitter, has signed an agreement with GMR Energy Ltd to acquire 74 per cent shares of Maru Transmission Service Company Limited and 49 per cent shares of Aravali Transmission Service Company Limited (ATSCL).
The agreement provides an option to Adani to acquire 100 per cent equity in ATSCL in a manner consistent with transmission service agreement and applicable consents.
The Equity value for 100 per cent stake of both the projects is ascribed at around Rs100 crore.
Aravali Transmission Service Company Limited 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, awarded on BOOM basis, was commissioned in July 2014 and since then has been in successful operation.
Maru Transmission Service Company Limited 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 per cent since COD.
These assets were awarded through a tariff based competitive bidding process with licence period of 25 years, further extendable by 10 years. ATL is developing another transmission line from Suratgarh to Bikaner in Rajasthan, in close proximity to these assets.
Speaking on this achievement, Gautam Adani, chairman of Adani Group, said, ''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.''
With its consolidated debt rising to Rs46,890 crore as of end March 2016, the GMR group has been selling assets to offload debt. The group has been making losses for the past two years with a high debt to equity ratio of 7.89 per cent.
The Adani group, on the other hand, has been on a buying spree in the power and port sectors. It bought Avantha's 600-Mw (megawatt) power plant for Rs4,200 crore, a stake in Dhamra port for Rs5,500 crore, and Lanco's 1,200-MW Udupi power plants for Rs6,300 crore, among others.