Kalpataru Power to Retail Three Transmission Projects to CLP India for Rs 3,275 Crores

Kalpataru Power Transmission has announced that it is in agreement with CLP India Private to vend its stake in three power transmission assets for an enterprise price of Rs 3,275 crores, the former informed bourses.

As a part of the deal, KPTL will sell three assets- Kalpataru Satpura Transco Private, Alipurduar Transmission and Kohima Mariani Transmission. The deal will help the company trim debt.

“The sale of assets will lead to a significant reduction in KPTL’s consolidated debt and will help focus on strategic diversification within the core business. KPTL will continue to focus on sustainable and profitable growth with the commitment to improve return ratios," Manish Mohnot, managing director and chief executive officer of KPTL said.

The transaction is subject to requisite approvals and compliances. The transaction for Alipurduar Transmission and Kohima Mariani Transmission, where Techno Electric & Engineering owns 26% stake, will be effective after the Commercial Operation Date and fulfilment of certain conditions.

The projected volume of debt at the SPVs levels would be around Rs 2,000 crore at the time of COD.

“Besides value accretive for KPTL, this will provide impetus and encourage global players to take an active part in the growing infrastructure sector in India. The company will continue to synergize its EPC expertise and undertake larger projects in future," said Pawan Kant, President (Long Term Assets & PPP), KPTL.