Adani Transmission to explore all PPP, distribution franchise opportunities

Post the acquisition of the Mumbai distribution business from Reliance Infrastructure, Anil Sardana, managing director and chief executive officer of Adani Transmission and chairman of Adani Electricity Mumbai (AEML), which is the new subsidiary formed to house the Mumbai distribution business, shares more details on the deal and the road ahead.

1. How much has been paid upfront to Reliance Infrastructure and are there any further payments to be made which are linked to certain milestones?

The transaction size is Rs 121 billion and besides this about Rs 6.50 billion has been paid on account of approved regulatory assets. Besides the above, the outcome of unapproved and pending legal cases at Maharashtra Electricity Regulatory Commission, Appellate Tribunal for Electricity and Supreme Court shall be to the account of RInfra.

2. How has the deal been funded?

The deal was funded through Rs 850 billion of loans from Indian lenders and Rs 36 billion of equity which in turn has been funded by promoters.

Reliance Infra completes Rs 188 billion Mumbai power biz sale to Adani

Reliance Infrastructure (RInfra) on Wednesday said it has completed the Rs 188 billion deal for sale of its Mumbai energy business to Adani Transmission, which will help it pare debt by two-thirds to Rs 75 billion.

Company chairman Anil Ambani announced the culmination of the deal involving the sale of the integrated power business which was stuck in December last year.

Ambani said the deal will help cut the company's overall debt to Rs 75 billion from the earlier Rs 220 billion and also added that it is planning to be a zero debt company by next year.

The company had called a board meet today to approve the transfer of Mumbai power business to Adani Transmission, after receiving the regulatory approvals.

In the past eight months, the deal has received go-aheads from fair trade regulator Competition Commission of India (CCI), shareholders of the company and Maharashtra Electricity Regulatory Commission (MERC) for the sale.