Reliance Infrastructure Ltd on October 5 said it has signed a binding term sheet agreement to sell its power transmission assets to Adani group firm ATL for over Rs 2,000 crore to cut debt.
Anil Ambani-led RInfra owns two electricity transmission lines spanning Maharashtra, Gujarat, Madhya Pradesh and Karnataka and has a 74 per cent stake in another project covering Himachal Pradesh and Punjab.
"Reliance Infrastructure Ltd (RInfra) today announced the signing of a binding term sheet with Adani Transmission Ltd (ATL) for 100 per cent stake sale of its transmission assets," the company said in a statement here.
RInfra had consolidated debt of Rs 25,100.81 crore as on March 31.
The sale is expected to be completed in the current financial year, ATL said in a separate press release.
The acquisition will add around 3,521 circuit kilometres of transmission lines to Adani's assets. All assets are currently operating at an average availability of over 99.5 per cent, Adani statement said.
RInfra said the transaction is in line with the strategic plan of monetising the non-core business and focusing on major growth areas like defence and engineering, procurement and construction business.
In August, the company sold its cement business to Birla Corporation in a Rs 4,800 crore deal.
The monetisation of roads and the Mumbai power businesses are at an advanced stage, RInfra release stated.
RInfra is reportedly looking to sell its 11 toll road assets to an overseas buyer for more than USD 1.5 billion.
In November 2015, it had signed a non-binding term sheet to sell 49 per cent in its Mumbai power business to the Canadian pension fund Public Sector Pension Investment Board, or PSP Investments. That deal has not yet fructified.
Monetisation of roads and the Mumbai power businesses are in advanced stage, RInfra statement said.
Ambani had at the company's annual general meeting last month stated that RInfra's focus is to be debt free on a standalone basis.
As part of the agreement, RInfra will sell its entire holding in three operational transmission assets - Western Region System Strengthening Scheme (WRSSS) B and WRSSS C projects located in Maharashtra, Gujarat, Madhya Pradesh and Karnataka, and Parbati Koldam Transmission Co Ltd (PKTCL) located in Himachal Pradesh and Punjab.
RInfra owns 74 per cent in PKTCL in joint venture with Power Grid Corporation of India Ltd (PGCIL).
All three transmission projects are completed and revenue generating; and the entire sale proceeds will be used for debt reduction, the company said.