Energetica India Magazine January-February 2021

NEWS FINANCE After Adani Total, Torrent Gas, Now GAIL Buys 5% Stake in Indian Gas Exchange KPTL to BuyMajority 51%Stake inBrazilian EPC, T&D Firm Fasttel for about $8.80 Mn Soon after Adani Total Gas and Torrent Gas acquired 5 per cent stake each in IGX, Maharatna PSU GAIL (India) Ltd has acquired 5 per cent equity stake in the Indian Gas Exchange (IGX) from The Indian Energy Exchange (IEX). Country’s leading natural gas compa- ny GAIL (India) Ltd owns and oper- ates a network of around 12,900 km of high-pressure trunk pipelines. On the partnership, IEX said it is a signif- icant development which will go a long way and add robust value addition in development of the gas markets in the country. Commenting on the development, SN Goel, Chairman, IEX and Director - IGX said that, “with strong impetus from the government to create a conducive policy and regulatory framework, gas markets are on the cusp of breakthrough growth. Competitive domestic gas markets are crucial to build a gas-based econo- my. In line, IGX is pro-actively working in collaboration with the stakeholders to build gas markets ecosystem in the country. We are delighted to welcome GAIL onboard as our partner and unite our strengths to realize India’s vision of a gas-based economy.” “GAIL is committed towards develop- ment of gas-based economy in the coun- try. The partnership between GAIL and IGX will benefit the gas sector as a whole and pave way for further development of gas market, more trading through gas exchange and increase in capacity uti- lization of pipelines,” said Santanu Roy, Executive Director (Business Develop- ment & Corporate Affairs), GAIL. Recently, two leading energy players, Adani Total Gas and Torrent Gas had also acquired 5 per cent equity stake each in the platform. Recently, Prime Minister Narendra Modi, during his Haldia visit, also stressed that gas-based economy is the need of the hour for India, and ‘One nation-One Gas Grid’ is an important step for meeting this need. For this, focus is on reducing cost of natural gas and expanding gas-pipeline network, PM Modi said. With an aim to tap Brazilian market and to expand footprints in Latin America, glob- al EPC player Kalpataru Power Transmis- sion Ltd (KPTL) has signed a definitive agreement to acquire controlling stake of 51 per cent in Fasttel Engenharia Ltda, Brazil (Fasttel) for about USD 8.80 mil- lion, subject to customary adjustments. The agreement was signed by Kalpata- ru Power do Brasil Participações Ltda, a wholly owned subsidiary of KPTL in Brazil. The move was in line with the company’s strategy to strengthen its core engineer- ing, procurement & construction (EPC) business and have greater geographical presence in stable and growing markets. 1988-founded Fasttel, with revenue of around USD 47 million in 2020 and has a profitable track record, specialized in EPC and maintenance of power trans- mission lines, substation and distribution systems across various voltage range up to 750 kV. It has presence in Brazil with an order book of around USD 95 million as on date. However, the transaction is expected to be closed by the end of Q1 FY22. Commenting on the acquisition, Sanjay Dalmia, Executive Director, KPTL said that, “we continue to expand our geo- graphical reach aligned to our vision of being a local player in the global envi- ronment. This acquisition of Fasttel is of strategic fit to KPTL in order to capture local market opportunities in Brazil and expand business in Latin American mar- ket.” Dalmia further said, “Fasttel has a track record of revenue growth of more than 25 per cent CAGR over the last 5 years along with consistent profitability. It has experienced manpower which does in- house engineering, procurement, land survey, planning, environment clearanc- es and construction.” “Brazil is a large and well-regulated pow- er transmission and distribution market with sizable investment planned in next 10 years,” he added. 10 energetica INDIA- Jan-Feb_2021