Adani may get Essel’s transmission project
Adani may get Essel’s transmission project – For an outsized power transmission projects from the debt-laden Essel group, Billionaire Gautam Adani is looking to shop for two people conscious of the discussions said. this may be the newest during a series of acquisitions that has helped shape his infrastructure conglomerate’s dominance in ports and airports.
The ₹4,000-crore project involves laying about 941km of transmission lines across Maharashtra, Telangana, and Andhra Pradesh, and building a sub-station at Warangal. it’s being developed by Warora Kurnool Transmission Ltd (WKTL), a special purpose vehicle found out by Essel Infraprojects Ltd in April 2015 bring the utmost importance transmission projects ever given bent the private sector to develop and operate. However, given Essel’s debt problems, that they had been struggling to usher in the equity needed to finish the project and, hence, the lenders have initiated a substitution process to usher in a replacement sponsor to develop the project, which is Adani Transmission Ltd. the method has been led by Yes Bank, which is that the main lender for this project,” one among the 2 people cited above said on condition of anonymity. the method is currently awaiting regulatory clearances, he added.
The total project cost of ₹4,000 crore is to be funded through a debt of ₹2,790 crores and equity of ₹1,210 crores, consistent with the newest credit rating report by Care Ratings after Essel group had infused only about ₹458.5 crore equity into the project been disbursed thus far for the project, of Around ₹1,200 crores, and debt has the person cited above added.
This will be the primary transfer of an asset through the substitution route within the transmission space, said the person cited above.
“The substitution route was brought in to form it easier for stressed sponsors to exit projects. It helps the lenders to exchange the struggling sponsor with one that features a stronger record and may execute the project and operate it,” the person added.
In the previous couple of years, the Adani group has expanded significantly through acquisitions. within the ports sector, where Adani is already the most important private sector port operator, the group has recently acquired a 75% stake in Krishnapatnam Port Co. Ltd for an enterprise value of ₹12,000 crores.
It is also within the process of acquiring the under-construction Dighi Port in Maharashtra under the company insolvency resolution process.
Last month, the group said it’ll take hold of India’s second-busiest airport of Mumbai with a pact to shop for the debt of GVK Airport Developers Ltd, against which a 50.5% stake in Mumbai International Airport Ltd (MIAL) has been pledged.
The Adani group also will buy the combined 23.5% stake held by Airport and South Africa’s Bidvest Group in MIAL. this is able to give the A 74% stake in MIAL.
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