IndiGrid completes India's largest transmission asset acquisition
Total Views |
New Delhi, March 27: In the major development, India Grid Trust has completed the largest transmission project deal by acquiring NER-II Transmission Ltd from Sterlite Power at an enterprise value of Rs 4,625 crore. With the acquisition, IndiGrid's assets under management have increased by 34 percent to Rs 20,000 crore.
It should be noted that IndiGrid is the country’s first and the largest power sector Infrastructure Investment Trust (InvIT). The platform's asset portfolio now consists of 13 power transmission projects with a total network of 38 power transmission lines and 11 substations extending over 7,570 circuit km and 13,350 megavolt amperes (MVA) in 17 states and one union territory. The acquisition of NER-II was envisaged as part of the framework agreement signed with Sterlite Power in April 2019. The investment manager of IndiGrid had signed a definitive share purchase agreement for the acquisition of NER-II on March 5, 2021.
Also Read: Handmade 'mukut' on goddess Kaali idol in Satkhira, Bangladesh
NER-II is part of the Inter-State Transmission Scheme (ISTS) network and was awarded on a build, own, operate, and maintain basis with a contractual period of 35 years. The project has 11 elements including two substations of 1,260 MVA capacity and four transmission lines extending over 830 circuit km.
The asset spans Assam, Arunachal Pradesh, and Tripura and is of strategic importance for the delivery of power in one of the toughest regions in the country. This project will strengthen the power transmission network in the northeastern states and address the transmission, sub-transmission, and distribution system needs of the region.
Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said, “I am pleased to share that we have concluded one of the largest acquisitions in the Indian power transmission landscape within a short period from signing definitive agreements. FY21 has been a transformational year for IndiGrid with ~INR 7,500 Cr acquisitions across Inter-State transmission, Intra-State transmission, and regulated tariff transmission projects as well as our first solar project. These accretive acquisitions have augmented our ability to grow DPU which is evident in our recent increase to INR 12.40 per annum."