Maharashtra electricity regulator concludes hearing on RInfra-Adani deal
MERC has reserved the order on the Rs18,800-crore deal; once order is issued, Adani Transmission will take over power supply to RInfra’s consumers in Mumbai suburbs.mumbai Updated: Jun 15, 2018 12:48 IST
The Maharashtra Electricity Regulatory Commission (MERC) on Thursday concluded the hearing of the 100% stake sale of Reliance Infrastructure Ltd.’s integrated Mumbai power business to Adani Transmission Ltd (ATL). However, the state electricity regulator has reserved the order on the Rs18,800-crore deal. Once the order is issued, Adani Transmission will take over the electricity supply of RInfra’s consumers that reside in Mumbai suburbs.
Anil Ambani-led RInfra had filed an application before the regulator in January 2018 seeking approval to sell its power business in Mumbai. RInfra’s Reliance Energy supplies power to nearly three million residential, industrial and commercial consumers in the suburbs of Mumbai.
“MERC has reserved its order, which is expected to be delivered in the next few weeks. Reliance Infrastructure Ltd. has already received the approval of Competition Commission of India (CCI) and its shareholders for the deal,” a statement from RInfra said.
Reliance Infrastructure intends to use the proceeds to reduce its debt of around Rs15,000 crore and become a Rs3,000 crore cash surplus company. “This is the largest ever debt reducing exercise by any corporate. Going forward, Reliance Infrastructure Ltd. will focus on upcoming opportunities in asset light EPC and Defence businesses,” a Reliance Infrastructure spokesperson said.
First Published: Jun 15, 2018 12:46 IST