Reliance Infra to sell 49 pct in Mumbai power business to Canadian fund

R-Infra will carve out the power business that it operates in Mumbai into a special purpose vehicle, called Reliance Energy, in which it will retain a 51% share

Reliance Infrastructure said on Monday it had agreed to sell 49% of its Mumbai power operations to Canada's Public Sector Pension Investment Board.

Reliance Infrastructure, part of billionaire Anil Ambani's Reliance Group, will carve out the power business that it operates in India's financial capital into a separate special purpose vehicle, called Reliance Energy, in which it will retain a 51% share.

The company did not give any financial details of the deal. The proposed transaction is subject to due diligence.

The Mumbai power unit distributes power to nearly three million users across the city, and brought in revenues of 77 billion rupees ($1.2 billion) last year, Reliance said.