Indian Power Sector infrastructure investment trust, India Grid Trust (IndiGrid) has signed an agreement with Sterlite Power to acquire 100 % equity stake in NER-II Transmission Limited. IndiGrid will buy the stakes from Sterlite Grid 4, a wholly-owned subsidiary of Sterlite Power Transmission.
NER II Transmission Limited is a part of Inter-State Transmission Scheme network across North- Eastern Indian States.
IndiGrid and Sterlite Power’s Agreement
IndiGrid will acquire the equity stake at an enterprise value for about Rs 4,625 crore. The transaction is expected to be closed during the fourth quarter of 2020-21, subject to regulatory approvals, and other customary closing adjustments.
Commenting on signing of agreement Harsh Shah, Chief Executive Officer of IndiGrid said “NER-II fits well with our strategy of focusing on operating assets with long term cash flows and minimal counterparty risk“.
Change in IndiGrid’s Portfolio after Agreement with Sterlite Power
Currently IndiGrid owns 12 revenue-generating, operating assets, spanning over 34 transmission lines, spread across 6,740 circuit Km and 9 substations with 12,290 MVA transformation capacity across fifteen states and one Union Territory.
Post agreement IndiGrid shall have 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 circuit Km and 13,350 MVA in 17 Indian states and one Union Territory.
With the execution of the agreement value of IndiGrid’s asset under management (AUM) will be over Rs 20,000 crore.
More About NER-II: NER II comprises of 11 elements including two substations of 1,260 MVA capacity and four transmission lines extending over 830 circuit Km, one Loop-In-Loop-Out (LILO) element and four line bays. NER II project is to strengthen power transmission network in the North- Eastern States and address transmission, sub-transmission and distribution system needs of the region.
About IndiGrid: India Grid Trust is India’s first listed power sector infrastructure investment trust (InvIT), sponsored by private equity firm, KKR and Sterlite Power Grid Ventures Ltd (SPGVL).
About Sterlite Power: Sterlite power is one of the leading integrated power transmission developer and solutions provider. Sterlite has projects of over 13,700 circuit Km and 26,100 MVA in India and Brazil. Sterlite Power is the sponsor of IndiGrid.