Mumbai: Maharashtra Electricity Regulatory Commission (MERC) has concluded its hearing of the proposed 100% stake sale of Reliance Infrastructure Ltd.’s (R-Infra) Mumbai power business to Adani Transmission Ltd (ATL).
R-Infra has already got the approval of Competition Commission of India (CCI) and its share-holders for the deal. R-Infra and ATL had signed Definitive Binding Agreement for 100% stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017.
The consideration value of the deal is estimated at ₹18,800 crore. R-Infra will utilise these proceeds in becoming debt free and will have up to ₹3,000 crore cash surplus, said a company statement, adding that this is the largest ever debt reducing exercise by any corporate.
R-Infra’s Mumbai Power business (known as Reliance Energy) is India’s largest private sector integrated power utility distributing power to nearly three million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km. It caters to a peak demand of over 1,800 MW, with annual revenues of ₹7,500 crore with stable cash flows.
Going forward, R-Infra will focus on upcoming opportunities in asset light EPC and defence businesses, the statement added.