CLP India, one of the largest foreign investors in the Indian power sector, has entered into a binding agreement with Kalpataru Power Transmission Ltd. (KPTL) and Techno Electric & Engineering Co. Ltd. (Techno) to buy equity stakes in three special purpose vehicles (SPVs), owning power transmission assets, for an estimated enterprise value of ₹3,275 crore.
The estimated amount of debt at the SPVs-levels would be approximately ₹2,000 crore at the time of commercial operation date (COD). The transaction is subject to requisite approvals and compliances.
The transmission lines include 240 kilometres (km) inter-state Kalpataru Satpura Transco Private Ltd. in Madhya Pradesh, 324 km inter-state Alipurduar Transmission Ltd (ATL) in Bihar – West Bengal and 251 km inter-state Kohima-Mariani Transmission Ltd (KMTL) in the States of Manipur, Nagaland and Assam.
The transaction marks CLP India’s entry into the power transmission sector. With this, CLP India has broadened its portfolio to straddle two out of the three main segments in India’s power value chain.
Clean energy portfolio
Commenting on the deal, Rajiv Mishra, MD, CLP India, said, “India is a primary growth market for CLP and CDPQ, and the two companies share a vision to invest in a low-carbon, clean energy portfolio in India. Entering the transmission sector is a landmark for CLP India. The acquisition of the KPTL assets will enable us to expand our geographical reach across the country and reinforce our commitment to grow our investments. “
As a part of this deal, the transaction for ATL and KMTL will be effective post COD and fulfilment of certain conditions. Techno owns 26% stake in KMTL.
“We have had the intent of entering this segment for some time now and we are glad that our entry will be marked by these three quality projects, which are at different stages of their life cycles.
“With our shareholders’ strategic backing and financial support, we intend to pursue a faster pace of growth to a more diversified portfolio,” said Naveen Munjal, director – business development and commercial (conventional), CLP India.
CLP India is owned by the CLP Group, one of the largest investor-owned power businesses in Asia, and Caisse de dépôt et placement du Québec (CDPQ), one of Canada’s leading institutional fund managers.
