Anil Ambani’s Reliance Infrastructure on Thursday announced the sale of its Mumbai power business to Adani Transmission in a deal valued at Rs 13,251 crore. Reliance Infrastructure said it will sell 100% stake of its debt-ridden power business.

“RInfra will utilise the proceeds of this transformative transaction entirely to reduce its debt, becoming debt-free and up to Rs 3,000 crore cash surplus,” the company said in a statement. “This is the largest ever debt reducing exercise by any corporate.”

Reliance Infrastructure said the business has been valued at Rs 12,101 crore and regulatory assets at Rs 1,150 crore. The company will also fetch regulatory assets approved by the Maharashtra Electricity Regulatory Commission worth Rs 5,000 crore and another Rs 550 crore from net working capital. The total consideration of the deal will be Rs 18,800 crore.

The share purchase agreement will allow Adani Group to take over the generation, transmission and distribution of power of more than 1,800 MW catering to nearly 3 million residential, industrial and commercial consumers in Mumbai and its suburbs.

“The acquisition marks our foray in the distribution sector in India,” Gautam Adani said in a statement. “We see a massive growth opportunity and will look at both organic and inorganic opportunities to build a market leading Distribution Company. With this acquisition, Adani Transmission will enjoy benefit of scale and of being an integrated distribution and transmission business in India.”