Reliance Infrastructure Ltd said it has completed the sale of its Mumbai power business to Adani Transmission for Rs 18,800 cr.
Out of the total amount, it has already got Rs 13,800 cr, and has used the amount to pay back its debt. It will get another Rs 5,000 cr next year.
“Regulatory Assets under Approval of Rs. 5,000 crore will flow entirely to Reliance Infrastructure making the Company debt-free in 2019,” the Anil Ambani company said.
“This is the largest ever debt reduction for any company in power sector in India. With this deal, Reliance Infrastructure is set to achieve top-end ratings.”
The deal involves the generation units based at Dahanu, some transmission lines in Mumbai and the rest of Maharashtra, and the retail distribution network in Mumbai suburbs.
The acquisition shall be housed in Adani Electricity Mumbai Ltd (AEML), a newly formed entity & a subsidiary of Adani Transmission Limited (ATL).
The unit will serve over 3 million customers spread across 400 sq. kms in the city of Mumbai.
“This acquisition marks the firm’s foray into the large scale electricity distribution sector, the most vital function within the power supply chain,” Adani Transmission said.
It said the new business will be transitioned seamlessly with the absorption of about 5,000 existing employees across three business areas.
“We 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”,” said Gautam Adani, Chairman, Adani Group.
He said the company will emerge as a leading utility in electricity distribution, providing “state-of-the-art, reliable and competitive supply experience”.
“Our endeavour would be to make this as a benchmark distribution system, both on network management and customer services. The immense knowledge of Mumbai team would also help us in multiplying our presence at other geographies,” said Anil Sardana, Managing Director & CEO, Adani Transmission Ltd & Chairman, Adani Electricity Mumbai Ltd.
Customers can continue to use the hotline of 19122, the company added.
It has also set up a website, www.adanielectricity.com, for customer service.
Adani Transmission owns and operates 35 Bulk Power Grid substations with approximately 19300 MVA of transformation capacity across the country.
It is the largest private sector transmission & distribution company in the country.