By entering a Share Purchase Agreement (SPA) with REC Power Development and Consultancy Ltd (RECPDCL) to buy 100% equity shares of Mahan Transmission Ltd (MTL), Adani Energy Solutions Ltd (AESL) has advanced greatly in India's energy industry. Valued at about ₹2,000 crore, this strategic purchase is a significant turning point in AESL's current growth of its transmission network.
Highlights of the deal include:
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AESL currently has complete ownership of Mahan Transmission Ltd, a special purpose vehicle created to run key intra-state transmission initiatives in Madhya Pradesh.
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MTL will immediately feed 1,230 MW from Adani Power's forthcoming 1,600 MW growth at Mahan, Singrauli, straight into the state grid and so improve regional electrical reliability.
Project Scope:
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With completion dates of October 2026 and April 2027, the project includes the construction of high-capacity substations at Rewa (Sagra) and Amarpatan, along with over 200 km of new 400 kV transmission lines.
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AESL won this project via a tariff-based competitive bidding process, with RECPDCL serving as the bid facilitator.
Growth Plan:
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AESL's aim is to improve shareholder value via organic as well as inorganic expansion of its transmission grid to over 26,000 circuit kilometers and around 90,000 MVA transforming capacity, hence the acquisition.
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The move not only strengthens Adani's position as leader in the industry but also helps Madhya Pradesh's industrial development by guaranteeing a strong, future-ready power grid.
Sources: DSIJ, Energetica India, The Economic Times