Reliance Infrastructure completes transmission JV sale to IndiGrid for enterprise value of Rs 900 crore

Mumbai: Reliance Infrastructure has completed the sale of its entire holding in a power transmission joint venture with the state-run Power Grid Corporation of India for an enterprise value of Rs 900 crore, the Anil Ambani-led company said on Saturday.
The cash-strapped and loss-making company had signed a deal with India Grid Trust (IndiGrid) in November for the sale of its 74% stake in the joint venture, Parbati Koldam Transmission Company, which runs an inter-state power transmission line between Himachal Pradesh and Punjab. The divestment is a part of Reliance Infrastructure’s plan to divest assets to reduce debt.

“The entire sale proceeds are being utilized for debt reduction. Reliance Infrastructure has reduced its total debt liabilities by around 6% from the deal proceeds,” the company said in a statement.

Prior to this, Reliance Infrastructure sold its Mumbai power business to Adani Transmission and its Delhi-Agra road project to Cube Highways and Infrastructure III Pte. The company has not disclosed its debt level after the recent divestments but its total financial debt, including short-term and long-term loans, totalled Rs 6,718 crore at the end of November. Ambani had said in June that Reliance Infrastructure would sell assets and reduce debt, to be debt free by the end of fiscal 2020-21.