Anil Ambani-led Reliance Infrastructure (RInfra) on Sunday said it is transferring the Western Region System Strengthening Scheme (WRSSS) Transmission Undertakings to two of its subsidiaries and has signed a Business Transfer Agreement for the same.
In a release, the company said WRSSS B & C Undertakings are being transferred to its two subsidiaries as part of the process to sell the businesses to Adani Transmission Limited.
Earlier in December 2016, RInfra has entered into share purchase agreement with Adani Transmission Limited for sale of WRSSS valuing the businesses at Rs 1,000 crore. All key approvals (CCI, CERC and lenders) have been obtained and the transaction is expected to be closed shortly, said RInfra.
The entire sale proceeds shall be used for debt reduction, informed the company.
There have been reports of RInfra looking to sell its flagship Mumbai electricity business. The company's power business caters to 3 million customers with its 1,800 Mw (megawatt) of distribution along with generation facilities. The distribution franchise is nine decades old with the licence valid till August 2036.
Last year, Adani Transmission completed acquisition of the GMR Energy transmission assets, which it had bought in July. The company said it completed acquisition of 74% shares of Maru Transmission Service Company and 49% shares of Aravali Transmission Service Company. While payment has been made for 100% stake in both the companies, the remaining stake in both the companies
will be transferred to Adani Transmission in a manner consistent with the Transmission Service Agreement.
Adani Transmission currently has around 5,000 km of transmission network and is also into operation and maintainance business.