Mumbai, (Maharashtra) [India], Mar 25 : IndiGrid, India's first power sector infrastructure investment trust (InvIT), has announced the acquisition of another transmission asset, East North Interconnection Company Ltd from Sterlite Power at a value of Rs 1,020 crore.
With this acquisition, IndiGrid's assets under management will increase by 10 per cent to about Rs 12,184 crore.
IndiGrid's asset portfolio will increase to nine power transmission projects with a total network of 20 power transmission lines spanning across more than 5,800 circuit kilometres across 13 Indian states.
ENICL is a part of the Inter State Transmission System (ISTS) network developed by Sterlite Power. It consists of two 400 kilovolt transmission lines with a total 900 circuit kilometres across Assam, Bihar and West Bengal.
It is a strategic asset which is crucial for power exchange across northeastern and eastern region of India. IndiGrid had signed an extension of right of first offer agreement with Sterlite Power for ENICL in May last year.
The acquisition has been funded by internal accruals, proceeds from the preference issue done in May 2019 and new debt. For the purpose of refinancing the existing debt in ENICL, IndiGrid has availed funding of Rs 900 crore from Axis Bank.
With this acquisition, IndiGrid's net debt to assets under management will be at about 49 per cent.
"This acquisition is in line with our strategy to acquire accretive assets with long term certainty of cash flows,' said Chief Executive Officer Harsh Shah.
"Our focus is to not only ensure stable distribution to unit holders by owning assets with long term contracts but also grow it with accretive acquisitions," he said in a statement.
( With inputs from ANI )