Anil Ambani-led Reliance Infrastructure today (29 August) said that it had completed the sale of its Mumbai energy business to Adani Transmission for Rs 188 billion, reports Business Standard. The deal will help reduce the debt-laden firm trim its debt to two-thirds to Rs 75 billion. The sale of the business was stuck since December last year.
Reliance Group chairman Anil Ambani said that the sale would help reduce its debt from Rs 220 billion as part of his vision to be debt-free from next year. The deal had got the prerequisite approvals from the Competition Commission of India (CCI), Maharashtra Electricity Regulatory Commission (MERC) and the company’s shareholders.
Reliance Infrastructure had earlier defaulted on the payment of Rs 1.3 billion worth redemption of non-convertible debentures and has said that it would make these payments using the proceeds from the sale to Adani.
Reliance Infra, formerly Reliance Energy and Reliance Power was formed in 2002 when it acquired the Bombay Suburban Electricity Supply (BSES) company. It is among India’s largest integrated power supply company supplying electricity to three million industrial, commercial and residential units in Mumbai. It caters to a peak demand of 1,800 mW that generate annual revenues of Rs 75 billion. The company has said that it will in future focus on the construction and defence sectors.
Reliance Infrastructure currently operates a series of toll roads across India, one line of the Mumbai Metro, several power transmission businesses, and will soon start construction of the Versova-Bandra Sea Link and another metro line in Mumbai. It also operates five airports in Maharashtra.
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