Kalpataru Power Transmission Ltd announced its agreement with CLP India Pvt. Ltd to sell some of its stake for about Rs 3275 crore. The power transmission company said that it has agreed to sell its stake in three power transmission assets to the Honk Kong based electric company.
The agreement for selling the stake includes assets of Kalpataru Satpura Transco Pvt. Ltd (KSTPL), Alipurduar Transmission Ltd (ATL) and Kohima Mariani Transmission Ltd (KMTL). The deal also states that the transactions for ATL and KMTL will be confirmed after both the companies agree to certain terms and conditions. The deal needs the approval of the Techno Electric and Engineering Company, holding about 26 percent of the KMTL stake, which is the major reason behind the delay in the transactions.
Kalpataru estimates that the debt at the assets during commissioning will be about Rs 2000 crore. In a statement to Live Mint, Manish Mohnot, managing director and CEO of Kalpataru said that the sale of assets will lead to a reduction in their debts and will help the company focus on strategic growth within the core business. He also added that the company will bring sustainable and profitable growth and presently aims at improving the return ratios.
"The Indian market is a primary growth market for CLP and CDPQ and the two companies share a vision to invest only in low carbon, clean energy portfolio in India. Entering the transmission sector is a landmark for CLP India," said Rajiv Mishra to LiveMint. He also said that the acquisition will help the electric company to grow and reach across the country.
CLP India is one of the largest investors in the Indian power sector operating sixteen wind energy projects and three solar energy projects across seven states. The company also owns a coal-fired power plant and a gas-based combined cycle power plant in Haryana and Gujarat respectively.