Adani Transmission (ATL) on Saturday said that it has signed conclusive agreements with Essel InfraProjects for the acquisition of Warora-Kurnool Transmission Limited (WKTL). Adani is attaining the transmission line at an enterprise valuation of 3,370 crores.

ATL states, "The regulatory approval for substitution of the original awardee in the contract by ATL has already been received from Central Electricity Regulatory Commission. The lender's consent and other necessary regulatory approvals shall be obtained before the closure of the transaction.”

WKTL will develop, operate and maintain a transmission system aggregating to 1,750 ckt km in Maharashtra, Telangana, and Andhra Pradesh and a 765/400 kV substation at Warangal.

The company states, “With this acquisition, the cumulative network of ATL will reach 17,200 ckt km. With this enhanced scale of operations, ATL will enjoy substantial benefits in terms of cost optimization and shared resources and will also fortify its position of being the largest private sector transmission company in the country.”

The acquisition is in sync with ATL's strategy to enhance the value for its stakeholders, through organic as well as inorganic opportunities. With this acquisition, the cumulative network of ATL will reach ~17,200 ckt km, out of which ~12,350 ckt km is already operational and ~4,850 ckt km (including this asset) is in various stages of execution.

Anil Sardana, MD & CEO, Adani Transmission states, “The acquisition of WKTL will bolster ATL’s pan-India presence, consolidating further its position as the largest private-sector transmission company in India. This strategic West to South 765 KV interconnector with Substation in Southern India, completes ATL presence in all regions of the country. This asset will not only increase ATL’s size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022. The acquisition is a further demonstration of ATL’s drive towards differentiated capability through inorganic growth, successful integration & making such assets value accretive, for long term sustainable value creation for its stakeholders."