Essar Power Ltd. (EPL) said it agreed to sell one of its two transmission lines to Adani Transmission Ltd. for ₹1,913 crore.
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The transaction is part of Essar’s strategy to pare debt while investing in green and renewable power.
EPL’s subsidiary Essar Power Transmission Company Ltd. (EPTCL) has 465-km transmission lines across three Indian States. The asset transacted is an operational 400 kV inter-State transmission line linking Mahan with Sipat pooling substation. The project operates under the CERC-regulated return framework.
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During the last three years Essar Power said it has reduced its debt from a peak level of about ₹30,000 crore to ₹6,000 crore.
Kush S, CEO said, “With this transaction, Essar Power is rebalancing its power portfolio with the twin objective of deleveraging its balance sheets and investing in green and renewable power, thereby furthering its ESG-oriented future growth. Essar Power has a current power generating capacity of 2,070 MW across four plants in India and Canada.”
According to Essar Group officials, the Group has repaid more than ₹1,80,000 crore of debt to banks and financial institutions in the last three years.