· Reliance Infrastructure Ltd. (RInfra) has completed the sale of its 100% shareholding in integrated Mumbai power distribution business to Adani Transmission Limited (ATL) for a total transaction value of ₹18,800 crore.
· The deal was announced in December 2017 with the signing of a definitive binding agreement between R-Infra and ATL, RInfra said in a statement, adding that the company had reduced debt liabilities by ₹13,800 crore from the deal proceeds.
· The integrated Mumbai power business includes the power generation units based at Dahanu, power transmission network across Mumbai and Maharashtra, and the retail power distribution network in Mumbai suburbs.
· Regulatory Assets under Approval of ₹5,000 crore will flow entirely to RInfra, making the company debt-free in 2019.
· This is the largest ever debt reduction for any company in the power sector in India. With this deal, Reliance Infrastructure is set to achieve top-end ratings.
· The acquisition shall be housed in Adani Electricity Mumbai Ltd. (AEML), a newly formed entity and a subsidiary of ATL. This marks the company’s foray into the large-scale electricity distribution sector.
· Gautam Adani, chairman, Adani Group, said that they aspire to enter into electricity distribution business in key cities and districts in India in pursuit of Government of India’s Vision to enable ‘Power for all by 2020’.
Source : The Hindu