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RInfra moves MERC for sale approval of Mumbai power biz to ATL

Press Trust of India  |  Mumbai 

Anil Ambani-led Infrastructure (RInfra) today said it has filed an application before MERC for approval to sell its power business to Transmission (ATL).

"RInfra has moved an application before Electricity Regulatory Commission (MERC) for its approval to assign its transmission and distribution licenses and transfer the integrated power business to ATL," the company said in a statement issued here.

The company has sought approvals from MERC for assigning its licenses and transfer the businesses to RInfra's wholly owned subsidiary Electric Generation and Supply (REGSL), which will then be acquired by Transmission.

In December last year, RInfra signed a definitive binding agreement for 100 per cent sale of its power business with Transmission for a total deal value of Rs 13,251 crore.

In addition, regulatory assets under approval, which is estimated at Rs 5,000 crore and net working capital on closing, estimated at Rs 550 crore, will flow directly to RInfra. This will take the total consideration value to Rs 18,800 crore.

With this deal, RInfra, which is sitting on a debt of nearly Rs 20,000 crore, would become debt-free, with up to Rs 3,000 crore cash surplus, the company said.

RInfra currently caters to nearly 30 lakh residential, industrial and commercial consumers in the city's suburbs, covering an area of 400 sq km.

In November, last year, RInfra completed the sale of its Western Region System Strengthening Scheme transmission undertakings to for Rs 1,000 crore.

The assets under the transaction include Western Region Transmission Project comprising 2,089-circuit km (Ckm) of transmission lines, and Western Region Transmission project comprising 974 Ckm of transmission lines.

With this acquisition, ATL's total network will be around 11,350 Ckm, of which approximately 9,000 Ckm are under operation.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 09 2018. 17:10 IST
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