IndiGrid Completes NER-II Transmission Acquisition from Sterlite Power at Rs 4,625 Cr

India Grid Trust (IndiGrid), India’s first and the largest power sector infrastructure investment trust (InvIT), has recently completed the largest transmission project deal by acquiring NER-II Transmission Ltd (NER-II) from Sterlite Power at an enterprise value of ~Rs 4,625 crore.

March 30, 2021. By Manu Tayal

India Grid Trust (IndiGrid), India’s first and the largest power sector infrastructure investment trust (InvIT), has recently completed the largest transmission project deal by acquiring NER-II Transmission Ltd (NER-II) from Sterlite Power at an enterprise value of ~Rs 4,625 crore.

With this acquisition, IndiGrid’s assets under management (AUM) have increased by ~34 per cent to ~Rs 20,000 crore (USD 2.70 billion).

Now, the platform’s asset portfolio consists of 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over ~7,570 ckm and ~13,350 MVA in 17 Indian states and 1 Union Territory.

In April 2019, IndiGrid signed the Framework Agreement with Sterlite Power for the acquisition of NER-II.

The NER-II project is part of Inter State Transmission Scheme (ISTS) network, and was awarded on a Build, Own, Operate, Maintain (BOOM) basis with a contractual period of 35 years. It has 11 elements including two substations of ~1,260 MVA capacity and four transmission lines extending over ~830 circuit kilometers. The asset spans across Assam, Arunachal Pradesh and Tripura and is of strategic importance for the delivery of power in one of the toughest regions in the country.

Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said, “I am pleased to share that we have concluded one of the largest acquisitions in the Indian power transmission landscape within a short period of time from signing definitive agreements. FY21 has been a transformational year for IndiGrid with ~Rs 7,500 Cr acquisitions across Inter-State transmission, Intra-State transmission, and regulated tariff transmission projects as well as our first solar project. These accretive acquisitions have augmented our ability to grow DPU which is evident in our recent increase to Rs 12.40 per annum.”

He added “Going forward, with a robust acquisition pipeline and proposed equity infusion via Rights Issue, IndiGrid is in a steadfast position to capitalize on the growth opportunities and become the most admired yield vehicle in Asia.”

“We are delighted to have successfully closed the sale of NER-II to India Grid Trust. This marks our tenth successful asset transfer, in under 4 years. This mega project will bring reliable power to 5.3 crore people in India’s north east region. The transaction is another validation of our pioneering equity recycling model and our ability to garner tremendous investor interest in our transmission assets,” said Pratik Agarwal, Managing Director of Sterlite Power.

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