Adani Energy Solutions Acquires Essar’s Transmission Assets For Rs 1,900 Crore

Adani Energy Solutions Ltd. acquired Essar Transco Ltd. through its subsidiary Adani Transmission Step-two Ltd. for an enterprise value of Rs 1,900 crore. The acquired entity operates the transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh, according to a company statement.

This acquisition will add 673 circuit kilometers of 400 kV inter-state transmission line, bringing AESL's cumulative network to more than 21,000 circuit kilometers, the company said. The company signed definitive agreements for the acquisition in June 2022. The project operates under the Central Electricity Regulatory Commission's regulated return framework and was commissioned on Sept. 22, 2018.

AESL is looking to consolidate its presence in central India with the acquisition of the Mahan-Sipat transmission network, which spans four operating assets and 3,373 circuit kilometers in the region.

MUFG Bank Ltd. is the sole lender financing the acquisition.