RInfra moves MERC to transfer Mumbai power biz to Adani Transmission

Reliance Infrastructure (RInfra) has applied to Maharashtra Electricity Regulatory Commission (MERC) to transfer its Mumbai power business and the attached licences to Adani Transmission Ltd.

"We hereby inform that Reliance Infrastructure Ltd has moved an application before MERC for its approval to assign transmission and distribution licences and transfer the integrated Mumbai power business in favour of its wholly owned subsidiary Reliance Electric Generation and Supply Ltd, to be acquired by Adani Transmission Ltd," read a regulatory filing.

Last month, RInfra and Adani Transmission had signed a definitive binding agreement for 100% stake in the former's Mumbai power generation, transmission and distribution business.

Both the companies are working towards the deal so that starting April 1, Mumbai suburban areas will receive electricity and its bills from the Adani Group.

The total deal value is Rs 13,251 crore. In addition, regulatory assets under approval estimated at Rs 5,000 crore and net working capital on closing estimated at Rs 550 crore will flow directly to RInfra. Thus, the total consideration value has been estimated at Rs 18,800 crore.

Post-deal, RInfra would become debt-free, with a cash surplus of up to Rs 3,000 crore.

For Gautam Adani, the deal marks the entry into power distribution business.

RInfra currently caters to nearly 30 lakh residential, industrial and commercial consumers in the city's suburbs, covering an area of 400 square kilometre.

In November last year, in order to pare debt, Anil Ambani-promoted RInfra had also completed the sale of its Western Region System Strengthening Scheme transmission undertakings to Adani Transmission for Rs 1,000 crore.