Adani Energy Solutions Ltd (AESL), India’s largest private transmission and distribution company, has completed the acquisition of a 100 percent stake in Essar Transco Limited. This acquisition, valued at Rs 1,900 crore, follows the necessary regulatory and other approvals and is based on definitive agreements signed in June 2022.
The acquisition includes a fully operational 400 kV, 673 ckt kms inter-state transmission line that connects Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh.
This project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and has been functional since its commissioning on September 22, 2018.
As part of its capital management strategy, AESL raised financing at competitive terms through MUFG Bank Ltd, the sole lender for the transaction. This financing establishes a new benchmark for the AESL in raising capital, reducing the cost of debt for its operational assets. It highlights the quality of AESL’s utility cashflows, supported by a stable regulatory framework and a long-term license life.
The acquisition of the Mahan-Sipat transmission network enhances AESL’s presence in central India, adding to its existing four operating assets with a total of 3,373 ckt km in the region.
This move aligns with AESL’s strategy to expand its capacities, improve operational efficiencies, and create network effects. With robust energy demand and strategic market opportunities, AESL continues to lead India’s energy transition.
About AESL
AESL, a part of the Adani portfolio, is a multifaceted organisation active in various areas of the energy sector, including power transmission, distribution, smart metering, and cooling solutions. As the largest private transmission company in India, AESL operates across 17 states, managing a transmission network totaling 21,182 circuit kilometers (ckm) and a transformation capacity of 57,011 megavolt-amperes (MVA). In its distribution segment, AESL serves over 12 million consumers in the metropolitan area of Mumbai and the industrial region of Mundra SEZ.
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