Indigrid to acquire 100 per cent shareholding in Khargone Transmission

India Grid Trust (IndiGrid) has signed share purchase agreement for acquisition of 100 per cent shareholding and economic interest, in one or more tranches, in Khargone Transmission Limited from Sterlite Power Transmission Limited.

The acquisition will be for a cash consideration at an enterprise value not exceeding Rs 14.98 billion. The completion of acquisition would depend upon receipt of unitholders’ consent, regulatory and other relevant approvals as well as completion of contractual obligations. The transmission project was awarded by the Ministry of Power for a 35-year period from the scheduled commercial operation date, on a built, own, operate and maintain basis. The project has six elements. The project has one substation element, three transmission line elements, one line-in-line-out element and one line bay. The project is located in the state of Madhya Pradesh and Maharashtra. The project was envisaged with the objective to improve power supply and grid reliability by delivering 1,320 MW of thermal power from Khargone power plant to consumers in the domestic, commercial, agricultural, and industrial segments in the state of Madhya Pradesh and Maharashtra.