State-run Power Finance Corporation has transferred three step-down subsidiaries, set up to execute electricity grid projects, to Adani Transmission Ltd.
Adani Transmission is the investing affiliate of Adani Power Ltd, which earlier this year won the bid to execute the three projects in Chhattisgarh. Both companies are part of the billionaire Gautam Adani-led Adani group.
Power Finance held the three units through wholly owned consultancy arm PFC Consulting Ltd. Financial details of the transfer were not disclosed.
The state-run company is the power ministryâs nodal agency to invite tariff-based bids for generation and transmission projects. While inviting bids it sets up wholly subsidiaries that arrange regulatory clearances and later transfers the units to the successful bidder.
The three firms that have been transferred to Adani Transmission are Sipat Transmission Ltd, Chhattisgarh-WR Transmission Ltd and Raipur-Rajnandgaon-Warora Transmission Ltd.
Adani Transmission said that, after completion of these projects, its transmission network will increase from 5,051 circuit km to 6,435 circuit km.
Adani Power has a generation capacity of 10,440 MW. This comprises 4,620 MW in Gujarat, 3,300 MW in Maharashtra, 1,320 MW in Rajasthan and 1,200 MW in Karnataka.
In July, private equity firm 3i Group reduced its exposure to Adani Power by selling more shares at a loss ahead of the Adani group's restructuring. This came a year after it sold a larger chunk of shares with a hair-cut.
As part of the restructuring, group flagship Adani Enterprises Ltd spliced out its transmission business into a separate firm while demerging its Belekeri Port in Karnataka into listed arm Adani Ports and Special Economic Zone and a small solar power unit in Kutch, Gujarat, to Adani Power.
Post-restructuring, the entire power generation business is housed under Adani Power and the entire ports business is under Adani Ports. Adani Enterprises has become a mining firm by merging its existing unit Adani Mining Pvt Ltd with itself.