RInfra moves MERC for sale approval of Mumbai power biz to ATL

Mumbai, Jan 9 (PTI) Anil Ambani-led RelianceInfrastructure (RInfra) today said it has filed an applicationbefore state electricity regulator MERC for approval to sellits Mumbai power business to Adani Transmission (ATL)."RInfra has moved an application before MaharashtraElectricity Regulatory Commission (MERC) for its approval toassign its transmission and distribution licenses and transferthe integrated Mumbai power business to ATL," the company saidin a statement issued here.The company has sought approvals from MERC forassigning its licenses and transfer the businesses to RInfra'swholly owned subsidiary Reliance Electric Generation andSupply (REGSL), which will then be acquired by AdaniTransmission.In December last year, RInfra signed a definitivebinding agreement for 100 per cent sale of its Mumbai powerbusiness with Adani Transmission for a total deal value of Rs13,251 crore.In addition, regulatory assets under approval, whichis estimated at Rs 5,000 crore and net working capital onclosing, estimated at Rs 550 crore, will flow directly toRInfra. This will take the total consideration value to Rs18,800 crore.With this deal, RInfra, which is sitting on a debt ofnearly Rs 20,000 crore, would become debt-free, with up toRs 3,000 crore cash surplus, the company said.RInfra currently caters to nearly 30 lakh residential,industrial and commercial consumers in the city's suburbs,covering an area of 400 sq km.In November, last year, RInfra completed the sale ofits Western Region System Strengthening Scheme transmissionundertakings to Adani Transmission for Rs 1,000 crore.The assets under the transaction include WesternRegion Transmission Maharashtra Project comprising2,089-circuit km (Ckm) of transmission lines, and WesternRegion Transmission Gujarat project comprising 974 Ckm oftransmission lines.With this acquisition, ATL's total network will be around 11,350 Ckm, of which approximately 9,000 Ckm are under operation.

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