Reliance Infrastructure Ltd on Wednesday announced the sale of its power transmission assets to Adani Transmission Ltd to reduce its debt, Mint reported. While the size of the deal was not revealed, reports suggested that it was in excess of Rs 2,000 crore.
The agreement will see the Anil Ambani-owned entity sell its holdings in three assets – the Western Region System Strengthening Scheme B project, the Western Region System Strengthening Scheme C project and the Parbati Koldam Transmission Co. Ltd. Reliance holds 74% in PKTCL, which is the company’s joint venture with the Power Grid Corporation of India. All three projects are currently operational.
The company said the revenue generated from the sale will be “utilized for debt reduction”, according to PTI. “The transaction is in line with the strategic plan of monetising non-core business and focus on major growth areas,” it said in a statement. The deal aims to increase earnings per share for Reliance Infrastructure’s shareholders. The company had a consolidated debt of Rs 25,100.81 crore as of March 31 this year.