It was reported earlier that the Adani group was in plans to attain assets from the Essel Infra. In the latest update to this news, it has now been reported that Adani Transmission Ltd (ATL) has signed a deal with Essel.
Adani Transmission Ltd (ATL) confirmed the news earlier and shared that they have signed an agreement with Essel InfraProjects Ltd. According to the agreement, the ATL will be acquiring the Warora-Kurnool Transmission Limited (WKTL). The transmission line was valued at Rs3,370 crore.
In a statement that was released by the ATL, it said that “The regulatory approval for substitution of the original awardee in the contract by ATL has already been received from Central Electricity Regulatory Commission. The lenders' consent and other necessary regulatory approvals shall be obtained before the closure of the transaction.”
The Warora-Kurnool Transmission Limited (WKTL) will be operating transmission system in Maharashtra, Andhra Pradesh and Telangana. Now the aggregate network of ATL is 17,200 ckt km. This will further the operations and help the Adani group to become a larger private sector transmission company.
The statement further added that “The acquisition of WKTL will bolster ATL’s pan-India presence, consolidating further its position as the largest private-sector transmission company in India. This strategic West to South 765 KV interconnector with Substation in Southern India completes ATL presence in all regions of the country.”
According to this, the acquisition will give ATL another boost to become the largest private sector transmission company in India. It is a strategic acquisition that helps ATL with their West to South project.
CEO of ATL, Anil Sardana said that “This asset will not only increase ATL’s size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022. The acquisition is a further demonstration of ATL’s drive towards differentiated capability through inorganic growth, successful integration & making such assets value accretive, for long term sustainable value creation for its stakeholders.”