Essar Power Limited, India’s first independent producer of power in the private sector, has signed a definitive deal with Adani Transmission Limited to sell one of its two transmission line for Rs 1,913 crore.
Essar Power Transmission Company Limited has 465 km of transmission lines in three Indian states. Transacted asset is a 400 kV interstate transmission line that links Mahan to Sipat’s pooling substation. The CERC-regulated return framework governs the operation of this project.
Essar Power reduced its debt by approximately Rs 30,000 crore in the last three years. Essar Power is also working to create a green balance sheet for renewable energy. This aligns with Essar’s strategy of investing into future-centric businesses that offer a higher rate of return within ESG.
Kush S. is the CEO of Essar Power Ltd. He stated that “with this transaction Essar Power rebalances its power portfolio with twin objective to deleveraging its balances and invest in green and renewable electricity, furthering its ESG oriented future growth.” Essar Power’s current power generation capacity is 2,070MW at four plants in India as well as Canada.
This is part the deleveraging strategy. Essar repaid Rs 1,80,000 crore to banks, financial institutions, and other financial institutions over the past three years. It’s the largest debt repayment ever made by a corporate Indian.