The transaction is expected to strengthen the company's position as one of the largest private sector transmission companies in the country.
Adani Transmission to acquire Alipurduar Transmission for $172m. (Credit: Pixabay/pasja1000)
Indian power transmission company Adani Transmission (ATL) has agreed to acquire acquiring Alipurduar Transmission from Kalpataru Power Transmission (KPTL) for around INR 1,286 crore ($171m).
Alipurduar Transmission is a project specific special purpose vehicle (SPV) that operates transmission lines totalling to approximately 650 ckt kms in West Bengal and Bihar.
The transaction is part of ATL’s strategy to increase its stakeholder’s value, through organic and inorganic opportunities.
Through the deal, the firm expects its cumulative network to reach over 15,400 ckt kms, out of which more than 12,200 ckt kms is already operational and more than 3,200 ckt kms is still under various stages of execution.
ALT to benefit from cost optimisation and shared resources provided by the acquisition
Adani Transmission managing director and CEO Anil Sardana said: “The acquisition of Alipurduar Transmission Ltd. will bolster the pan-India presence of ATL consolidating its position as the largest private sector transmission company in India.
“This asset will take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022.”
On a build, own, operate, maintain basis, the Alipurduar Transmission project was awarded through competitive bidding process.
The firm said that the element 1 of the project comprises a transmission line from Alipurduar to Siliguri that was commissioned on 20 January this year.
Additionally, the element 2 of the project includes a transmission line from Kishanganj to Darbhanga which was commissioned on 6 March last year.
With the addition of Alipurduar Transmission, ALT will benefit from cost optimisation and shared resources.
It is expected to strengthen the company’s position as one of the largest private sector transmission companies in the country.
Subject to all necessary regulatory approvals and other consents, the transaction is estimated to be completed in few months.