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Adani Energy Completes Acquisition of Essar’s Mahan-Sipat Transmission Assets for Rs 1,900 Crore

According to the statement, Adani Energy Solutions Ltd (AESL), has acquired a 100 per cent stake in Essar Transco Limited which covers a fully operational 400 kV, 673 ckt kms inter-state transmission line linking Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh.

Adani Energy Completed Acquisition of Mahan-Sipat Transmission Assets
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Adani Energy Solutions on Thursday said it has completed the acquisition of Essar’s Mahan-Sipat Transmission assets for an enterprise value of Rs 1,900 crore. 

The share acquisition is pursuant to definitive agreements signed in June 2022, a company statement said. 

According to the statement, Adani Energy Solutions Ltd (AESL), has acquired a 100 per cent stake in Essar Transco Limited after obtaining the requisite regulatory and other approvals for an enterprise value of Rs 1,900 crores.  The acquisition covers a fully operational 400 kV, 673 ckt kms (circuit kilometre) inter-state transmission line linking Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh. 

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The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and was commissioned on September 22, 2018. 

Adani Transmission Step Two Ltd, a wholly owned subsidiary of Adani Energy Solutions, has acquired a 100 per cent stake in Essar Transco Ltd for Rs 1,900 crore. 

This establishes a new benchmark for AESL to raise capital and unlocks the lower-cost debt for its operational assets. MUFG Bank Ltd is the sole lender for the financing. 

The acquisition of the Mahan-Sipat transmission network will consolidate AESL’s presence in central India with 4 operating assets having 3,373 ckt km in the region. 

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