Essar Power to sell its transmission asset to Adani for Rs 1,913 crore
New Delhi, June 3 (UNI): The Ruias-controlled Essar Power on Friday said it has signed a definitive agreement with Adani Transmission to sell one of its two transmission lines for Rs 1,913 crore.
The company said it is transitioning to green businesses to achieve ESG (environmental, social, and governance) oriented future growth.
“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,” said Kush S, CEO, Essar Power.
Essar Power has a current power generating capacity of 2,070 MW across four plants in India and Canada.
The group subsidiary Essar Power Transmission Company Limited (EPTCL) has 465-km transmission lines across three Indian states.
“The asset transacted is an operational 400 KV inter-state transmission line linking Mahan to Sipat pooling substation. The project operates under the CERC (Central Electricity Regulatory Commission) regulated return framework,” Essar Power said.
The company said that in the last three years it reduced its debt from a peak level of approximately Rs 30,000 crore to Rs 6,000 crore.
“Alongside this, Essar Power has been in the process of curating a green balance sheet around renewable energy which is in line with Essar’s strategy of investing in future-centric businesses which give a superior rate of return within the ESG framework,” it said.