Anil Ambani-led Reliance Infrastructure said it has won approval from the Maharashtra Electricity Regulatory Commission for the sale of its Mumbai power business to Adani Transmission Ltd.
It said it now expects to close the Rs 18,800 cr transaction next month.
Reliance Infrastructure will utilize the proceeds of the transaction entirely to reduce its debt, and will become debt free and have a cash surplus of Rs 3,000 crore after the deal, it added.
Going forward, Reliance Infrastructure Ltd. will focus on upcoming opportunities in asset light EPC and Defence businesses, company said.
MERC had concluded its hearing into the matter and reserved its order on June 14, 2018.
Reliance Infrastructure Ltd. has already received the approval of Competition Commission of India (CCI) and its share – holders for the deal .
The deal, announced seven months ago, involves Reliance’s power generation, transmission and distribution infrastructure in Mumbai, one of the few markets where private companies are allowed to supply power.
Calling it “the largest ever debt reducing exercise by any company”, it said the deal will help its future growth.
The Mumbai power business, also known as Reliance Energy, is India’s largest private sector integrated power utility, distributing power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai over an area of 400 sq km.
It caters to a peak demand of over 1,800 MW, with annual revenues of Rs 7,500 crore, and faces competition from the likes of Tata Power.