Adani Transmission Ltd is planning to buy a power transmission project from Essel Infraprojects Ltd, a unit of debt-laden Essel Group, a media report said.
The Adani group company is looking to buy Warora Kurnool Transmission Ltd, a special purpose vehicle set up by Essel Infraprojects in April 2015, Mint reported, citing two people aware of the discussions.
Warora Kurnool is laying about 941 km of transmission lines across Maharashtra, Telangana and Andhra Pradesh, apart from building a sub-station. The total project cost is Rs 4,000 crore.
According to a CARE Rating Ltd report, the project needs to be funded with Rs 2,790 crore debt and Rs 1,210 crore of equity. Of this, Rs 1,200 crore in debt and Rs 460 crore in equity has already been disbursed.
The report said that Essel had been struggling to bring in the equity needed, and so the lenders have initiated a process to bring in a new sponsor.
Last year, the billionaire Gautam Adani-controlled group had acquired 10 operating solar energy assets from Essel group for an enterprise value of Rs 1,300 crore ($181 million).
