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This is an archive article published on August 30, 2019
Essel sells 205 MW of solar assets to Adani for Rs 1,300 crore
The company is further working to close the divestment of additional 480-MW solar asset portfolio, the firm said in a statement.
The assets, located in Punjab, Karnataka and Uttar Pradesh, have long-term power purchase agreements (PPAs) with various state electricity distribution companies.
The debt-ridden Essel Group has entered into an agreement with Adani Green Energy to sell its 205-MW operating solar assets at an enterprise value of Rs 1,300 crore.
The company is further working to close the divestment of additional 480-MW solar asset portfolio, the firm said in a statement.
The assets, located in Punjab, Karnataka and Uttar Pradesh, have long-term power purchase agreements (PPAs) with various state electricity distribution companies. The Essel Group promoter’s debt was at Rs 11,000 crore, of which Rs 4,224 crore was reduced post the Oppenheimer deal, bringing the figure down to Rs 6,776 crore. With the latest announcement, the debt will come down further.
Essel Group’s spokesperson said, “Our asset divestment process is well within the purview of the agreed timelines with our esteemed lenders. The sale of the group’s solar assets to AGEL is yet another positive step taken in this direction. We have maintained a constant process of identifying the right potential partner for the sale of our precious infra assets.”
The divestment process for the entire solar portfolio of Essel Infraprojects and Essel Green Energy has been delayed, for reasons attributed to delay in installation of excess overloading capacity (over and above lender sanctioned capacity) and due to ongoing negotiations with the prospective investors on the revised deal value, Brickwork Ratings said recently. —FE
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