Greenko eyes Essel Infraprojects’ power transmission business for $1 billion

Renewable energy company Greenko Group is in talks with Essel Infraprojects Ltd to acquire its power transmission business for an estimated $1 billion, two people aware of the development said.

Subhash Chandra’s Essel Infraprojects has five transmission projects in its portfolio.

“This will be one of the largest deals in the Indian electricity transmission space,” one of the two people cited above said on condition of anonymity.

Hyderabad-based Greenko Group, backed by Singapore’s sovereign wealth fund GIC Holdings Pte and the Abu Dhabi Investment Authority, is planning to enter the transmission business amid low green energy tariffs in India that will likely squeeze project developers’ profitability.

“Diversifying portfolio, enhancing scale and capabilities, securing cash flows and entry into transmission and distribution which offers tremendous value going forward seems to be driving the deal,” said Sambitosh Mohapatra, partner, power and utilities, PwC India. “As the sector transforms, value pools shift more to T&D and behind the meter.”

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