The third-most valued consortium Adani Group has correlated to buy Essar Power’s transmission business in central India for Rs 1,913 crore. The deal will integrate Adani’s existence in central India, while it will mark the exit of Essar from the power transmission business.
Connecting Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh, the asset transacted is a functioning 400kv transmission line. Essar Power will utilize the sale proceeds to curtail its debt, which stands at Rs 6,000 crore. Its debt was at the highest level of Rs 30,000 crore, 3 years ago.
With its policy of inorganic growth, the acquisition is in line for Adani, and will boost the Adani Transmission network to 19,468 circuit kilometers. The aggressive M & A moves in energy, building materials and travel services, is being made by the chief of Adani Group, Gautham Adani.
However, the group announced procurements of Holcim India’s cement unit, Kohinoor basmati rice brand and SoftBank’s green energy portfolio. Along with commercial property and refinery, the Essar Group has been divesting its assets to diminish liabilities and to concentrate on future growth that’s oriented towards environmental, social and governance.
The firm consists of a current electricity producing capacity of 2,0270 MW across 4 plants in India and Canada. The group stated that Essar Power has been in the process of tabulating a green balance sheet around renewable energy which is in line with the group’s principle of investing in future-centric businesses which render a superior rate of return within the ESG configuration.