Adani Energy Solutions Acquires Essar Transco for INR 1,900 Crores, Expands Central India Network

Adani Energy Solutions Ltd (AESL), India’s largest private transmission and distribution company, has successfully acquired a 100% stake in Essar Transco Limited. The acquisition, valued at INR 1,900 crores, was finalized after receiving the necessary regulatory and other approvals. This follows definitive agreements signed in June 2022.

This acquisition includes a fully operational 400 kV, 673 ckt km inter-state transmission line that connects Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh. The project, which falls under the Central Electricity Regulatory Commission (CERC) regulated return framework, was commissioned on September 22, 2018.

In line with AESL’s capital management strategy, the company has also secured financing on highly competitive terms, setting a new benchmark for future capital raises and unlocking lower-cost debt for its operational assets. MUFG Bank Ltd. is the sole lender for this financing, highlighting the strong and stable regulatory framework supporting AESL’s utility cashflows and long-term license life.

The acquisition of the Mahan-Sipat transmission network strengthens AESL’s presence in central India, adding to its portfolio of four operating assets totaling 3,373 ckt km in the region. This move aligns with AESL’s strategy to enhance existing capacities, improve efficiency through operational synergies, and create a network effect. With robust energy demand and a keen ability to identify and capitalize on market opportunities, AESL continues to lead India’s energy transition.