The acquisition of Rajasthan Rajya Vidyut Prasaran Nigam Limited’s 100% equity shares in Sangod Transmission Service Limited (STSL) by Adani Energy Solutions, formerly Adani Transmission Limited, has been completed. At a meeting on October 6, 2023, the company’s Board of Directors committee approved the proposal. The Transmission Project – RAJ/PPP – 11 – 2X 400/220kV, 500MVA GSS at Sangod, which includes a 220/132kV, 160 MVA transformer and related transmission line, is being implemented as part of the STSL Project.
The strategic acquisition aligns with Adani Energy Solutions Ltd’s (AESL) objective of increasing value for its shareholders through organic and inorganic growth opportunities despite the controversy surrounding the Adani shares overleveraged.
Rajasthan Rajya Vidyut Prasaran Nigam Ltd. sold all of its shares in Sangod Transmission Service Ltd. (STSL) to Adani Energy Solutions Ltd. According to an exchange filing dated October 6, 2023, the STSL project entails implementing a transmission project at Sangod in Rajasthan along with a 220/132 kV, 160 MVA transformer, and associated transmission line. STSL still needs to start doing business.
The authorised and paid-up share capital is Rs. 5 lakhs per share, while the equity shares are purchased at a face value of Rs. 10. The Adani Group claims that this acquisition is being proposed to advance AESL’s strategy of increasing importance for its shareholders using organic opportunities and ending the Adani shares overleveraged controversy. The business already operates power transmission networks in Suratgarh-Bikaner, Barmer, and Bikaner to Sikar, among other regions of Rajasthan.
The Khargar-Vikhroli transmission line in Mumbai was earlier put into service by Adani Energy Solutions, formerly known as Adani Transmission Ltd. The city’s first 400 kV GIS substation was the project’s main component.
The Transmission Project – RAJ/PPP – 11 – 2X 400/220kV, 500MVA Gas-Insulated Substation (GSS) at Sangod, as well as a 220/132kV, 160 MVA transformer and the related transmission line, are all included in the STSL project. Adani Energy Solutions Ltd.’s overarching objective of increasing value for its shareholders through organic and inorganic growth opportunities aligns with this strategic acquisition. The equity shares of STSL were acquired at face value, which amounted to Rs. 10 per share.
Having been established on February 3, 2021, STSL has operations in India. It has yet to start doing business, though. As a result, the turnover information for the previous three years needs to be more relevant in this situation. With its main office located in Ahmedabad, Gujarat, Adani Energy Solutions Limited (AESL) is one of the biggest power transmission companies in the private sector in India, operating throughout the country.
In addition to high-voltage DC transmission lines and substations with voltage levels of +/- 500kV, AESL also owns and uses a variety of high-voltage AC transmission lines—substations with voltage levels of 132kV, 220kV, 400kV, and 765kV. Over 19,700 ckt km of transmission lines and about 46,000 MVA of power transformation capacity are part of AESL’s portfolio. With an ambitious goal of installing 30,000 circuit kilometres of transmission lines by 2030, AESL primarily seeks to capitalise on the enormous potential in India’s transmission sector.
With investments in cutting-edge technologies, AESL has achieved the highest network availability in the nation—over 99.7%—which meets the highest international standards and puts an end to the controversy surrounding Adani shares overleveraged debate.
In Rajasthan, Adani Energy Solutions Ltd. (previously known as Adani Transmission Ltd.) is building an intrastate power transmission system to help evacuate a thermal power plant owned by the state government. The intrastate transmission scheme will be developed under a concession from Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RVPN), the state transmission utility, expected to cost approximately Rs. 109 crores. And it will be housed under the project’s particular purpose vehicle, “Sangod Transmission Service Ltd” (STSL).
Adani Energy Solutions was the developer chosen through the tariff-based competitive bidding (TBCB) process. The development of an intrastate transmission system in Rajasthan, which is intended to remove power from the Kalisindh thermal power plant owned by state generator Rajasthan Rajya Vidyut Utpadan Nigam Ltd., will be the responsibility of Sangod Transmission Service Ltd. The transmission plan calls for dismantling the Adani shares overleveraged controversy and installing a 2400/220kV, 500 MVA GIS substation at Sangod and a 220/132kV, 160 MVA transformer and related lines.
At the proposed 400kV Sangod GIS substation, the associated lines will include a 7.5-km LILO of one circuit of the 400kV double-circuit line from the 400kV Kalisindh substation to the 765kV Anta substation. Develop under the build, own, operate & maintain (BOOM) modality will be the gearbox scheme. The Kalisindh power plant presently has two 600 mw operational units. One 800-mw supercritical unit will be added, bringing the total installed capacity to 2,000 MW.