Tata Power, Sterlite Power, CLP India and Edelweiss Financial Services are in fray to acquire $1billion worth power transmission projects of Subhash Chandra-promoted Essel Infraprojects.
The four firms have been shortlisted for negotiations by Essel Infraprojects, which also plans to exit the solar business apart from transmission projects, people familiar with the development said. Adani Power and Greenko, which had earlier evinced interest, are out of race, they said.
“Essel Infraprojects has begun negotiations with the four bidders and meetings are lined up this week. Price bids have been called and will be opened soon,” an industry insider said.
A CLP India spokesperson said, “At CLP, as a policy, we do not comment on market speculation.” Sterlite Power declined to respond to ET’s query, saying it doesn’t comment on market speculation. Essel Infraprojects, Tata PowerNSE 0.32 % and Edelweiss Financial Services did not respond to ET’s queries at the time of going to press.
Essel is in separate talks with Greenko group to sell its solar business for another $1 billion. Essel bagged four transmission contracts for 35 years in competitive bidding. Two of the projects are commissioned and may yield better valuations, another person close to the development said.
The company has four SPVs for the commissioned and under construction power transmission projects.
Darbhanga-Motihari Transmission Co Ltd was commissioned in 2013 and is operational. NRSS XXXVI Transmission Ltd is an SPV for a system strengthening scheme in the northern region and is scheduled for commissioning in December 2019. NRSS XXXI (B) Transmission Ltd owns and operates the 400 kV Kurukshetra-Malerkotla and Malerkotla-Amritsar transmission lines .The contract period is for 35 years post commissioning of the project.
Warora-Kurnool Transmission Ltd is touted as the biggest interregional transmission project awarded under inter-state tariffbased competitive bidding. The 765 kV project will facilitate import of power to southern region and is scheduled for commissioning in November 2019.
Experts say the power transmission sector is in a consolidation phase. Reliance InfrastructureNSE 3.46 % had last year announced stake sale of generation, transmission and distribution projects in Mumbai to Adani Transmission Ltd for Rs 18,800 crore.
Source: economictimes.indiatimes
