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Anil Ambani-controlled Reliance Infrastructure on Tuesday said it has moved an application before Maharashtra Electricity Regulatory Commission (MERC) for its approval to assign RInfra's Transmission and Distribution Licenses and transfer the integrated Mumbai Power Business to Adani Transmission.
The transfer will be executed through a sale of a wholly-owned subsidiary Reliance Electric Generation and Supply Limited (REGSL). “RInfra has sought approvals from MERC for assigning its Licenses and transfer the businesses to RInfra’s wholly-owned subsidiary REGSL, which will then acquired by Adani Transmission,” the company said in a statement to BSE.
In December, RInfra had signed a definitive binding agreement for 100 per cent sale of its Mumbai power business with Adani Transmission for a total deal value of Rs 132.5 billion. The deal included RInfra’s integrated assets in power generation, transmission and distribution in Mumbai. The company earlier said it looks to complete the deal by the end of the current financial year subject to various approvals. Timely approval of the deal is crucial for the company, as it plans to use proceeds from the deal to retire debt. The company added, post the completion of the deal, RInfra would be a debt-free company at the standalone level.