by admin | May 25, 2021 | Business, Large Enterprise, SMEs
Anil Ambani
Mumbai : Reliance Infrastructure (RInfra) on Wednesday said that it has completed the Rs 18,800-crore sale of its Mumbai integrated distribution business to Adani Transmission (ATL), which will help RInfra reduce its debt by nearly two-thirds to Rs 7,500 crore.
At a media briefing here following a board meeting to approve the transfer of the Mumbai power business, RInfra Chairman Anil Ambani announced the closure of the deal which had been signed in December last year.
“For Reliance Infrastructure, this is truly a transformative transaction. The company’s gross debt will be reduced from about Rs 22,000 crore to only Rs 7,500 crore, representing a steep debt reduction of 65 per cent in a single transaction,” he said.
In the past eight months, the sale has received regulatory approvals from the Competition Commission of India, shareholders of the company and the Maharashtra Electricity Regulatory Commission.
RInfra and ATL had signed the Definitive Binding Agreement for 100 per cent stake sale of the integrated business of generation, transmission and distribution for Mumbai in December 2017.
Reliance Energy, operating the Mumbai power business, supplies to nearly three million residential, industrial and commercial consumers in the city suburbs covering an area of 400 sq km. It caters to a peak demand of over 1,800 MW, with annual revenues of Rs 7,500 crore with stable cash flows, the company had said.
Speaking of the company’s engineering and construction business, Ambani said that some of the showpiece projects in Rinfra’s order book include the Rs 7,000-crore Versova-Bandra Sealink, Mumbai Metro Line 4, Kudankulam Nuclear Power Project in Tamil Nadu and the integrated LNG Terminal and power project in Bangladesh.
—IANS
by admin | May 25, 2021 | Business, Corporate, Corporate Buzz, Large Enterprise
Mumbai : Announcing the largest ever debt reduction exercise by an Indian corporate, Reliance Infrastructure (RInfra) on Thursday said it has signed a definite agreement for the sale of its Mumbai power business to Adani Transmission Ltd for a total consideration of Rs 18,800 crore.
While the total deal value of the sale of the Mumbai power utility Reliance Energy is Rs 13,251 crore, regulatory assets estimated at Rs 5,000 crore and net working capital on closing estimated at Rs 550 crore would also accrue to RInfra as part of the agreement, a company release said here.
“Reliance Infrastructure Ltd today announced signing of a definitive binding agreement with Adani Transmission Ltd (ATL) for 100 per cent stake sale of its Mumbai power business, which includes the integrated business of generation, transmission and distribution of power for Mumbai,” it said.
“Total deal value is at Rs 13,251 crore. This comprises of business valued at Rs 12,101 crore and regulatory assets approved so far of Rs 1,150 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.
“Total consideration value is estimated at Rs 18,800 crore,” it said.
“RInfra will utilize the proceeds of this transformative transaction entirely to reduce its debt, becoming debt free and up to Rs 3,000 crore cash surplus,” the statement added.
The proposed transaction is subject to the customary approvals.
Describing the deal as the largest ever debt reducing exercise by any corporate, RInfra said that monetisation of the Mumbai power business is a major step in the companmy’s deleveraging strategy for future growth.
“Reliance Infra’s Mumbai power business (known as Reliance Energy) is India’s largest private sector integrated power utility distributing power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km,” the statement said.
The Mumbai utility caters to a peak demand of over 1,800 MW, with annual revenues of Rs 7,500 crore with stable cash flows, it added.
RInfra also said that, going forward, it will focus on upcoming opportunities in the asset-light engineering, procurement and construction, as well as defence businesses.
—IANS
by admin | May 25, 2021 | Business, Corporate, Corporate Buzz, Large Enterprise, Muslim World
Mumbai : Reliance Infrastructure (RInfra) on Wednesday announced it has won two major engineering, procurement and construction (EPC) contracts in Bangladesh valued at Rs 5,000 crore through an international competitive bidding.
The first EPC contract is for setting up the entire infrastructure of a 750 MW liquefied natural gas (LNG)-based combined cycle power plant at Meghnaghat near Dhaka.
The second project is for building a 500 million metric square cubic feet per day (mmscfd) floating storage regasification unit-based integrated LNG terminal project at Kutubdia Island.
“Both the contracts are to be executed in a project schedule of 24 months, and are to be completed by 2019.
“The integrated LNG terminal project works would include setting up jetty and onshore and offshore gas pipelines,” an RInfra release said here.
“This power project win comes after winning an EPC order for Rs 3,675 crore from NLC India Ltd for setting up two lignite based thermal power projects of 250 MW capacity each,” RInfra Chief Executive (EPC) Arun Gupta, said in the statement.
On Tuesday, subsidiary firm Reliance Power (R-Power) announced that the Asian Development Bank (ADB) had approved its debt financing and partial risk guarantees totalling $583 million for the integrated project in Bangladesh.
Last week, it announced the signing of the project agreements for executing the first phase of its gas-fired power plant and LNG terminal integrated project.
R-Power said the Terminal Use Agreement for the LNG Terminal project was signed with Bangladesh state-run PetroBangla.
“The project agreements for the power project have already been executed with Bangladesh Power Development Board,” it added.
The integrated project entails an investment outlay of over $1 billion, which represents the largest foreign direct investment (FDI) in Bangladesh and the largest investment in the country’s energy sector, the statement said.
—IANS
