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IndiGrid announces acquisition of NER II Transmission from Sterlite Power for Rs 4,625 crore

On Friday, India Grid Trust confirmed entering an agreement to acquire NER-II Transmission Ltd from Sterlite Power for Rs.4,625 crore.

Moreover, the deal will foster IndiGrid’s assets under management by 34 per cent to more than Rs.20,000 crore.

Further, the platform’s asset portfolio will consist of 13 power transmission projects post completion.

This includes a total network of 38 power transmission lines and 11 substations extending over 7,570-circuit km.

Besides this, it has 3,350 MVA in 17 States and 1 Union Territory.

However, IndiGrid has acquired Rs.8,300 crore worth assets since the last capital raise comprising Rs 7,100 crore of Framework.

This is from Sterlite Power along with first cost-plus transmission asset from Reliance Infrastructure.

NER-II, a part of Inter State Transmission Scheme network received an award on a Build, Own, Operate, Maintain basis. In fact, it had a contractual period of about 35 years.

Meanwhile, the deal is part of the Framework Agreement that IndiGrid inked in April 2019 with Sterlite Power to acquire NER-II. Also, it is expected to close during fourth quarter of FY21.

SterliteGrid is a wholly-owned subsidiary of Sterlite Power Transmission Ltd which is one of the sponsors of IndiGrid.

Moving forward, the deal aims to bolster the power transmission network in the North Eastern States.

It will also address the transmission, sub-transmission, and distribution system needs of the region.

A combination of internal accruals, debt, equity proceeds from the preference issue of May 2019 funded the acquisition.

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