Ahmedabad (Gujarat): Adani Transmission Ltd (ATL), Adani Electricity Mumbai Ltd (AEML) and a subsidiary of Qatar Investment Authority (QIA) have signed definitive agreements for the sale of a 25.1 per cent stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML.
The total QIA investment in AEML will be about Rs 3,200 crore. AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 30 lakh consumers across a license area of 400 square kilometres in Mumbai, the world`s seventh-largest city by the size of the population.
AEML`s market share of Mumbai is 87 per cent by license area, 67 per cent by consumers served and 55 per cent by electricity supplied.As part of the transaction, ATL and QIA have agreed definitive plans to ensure that over 30 per cent of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023.
In addition, ATL and QIA have agreed on a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.
The transaction demonstrates the increasingly strong relations between India and Qatar and the commitment of both countries to further develop their close ties in the years ahead, ATL said in a statement on Wednesday.
"We are delighted to embark on this partnership with the QIA. Together, we will continue to work towards improving the reliability of supply and consumer satisfaction for over 30 lakh AEML consumers served in Mumbai," said Adani Group Chairman Gautam Adani.
"We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long-term partnership with QIA," he added.
QIA Chief Executive Officer Mansoor Al-Mahmoud, said: "We look forward to a long-term partnership with the Adani Group, with whom we share an inter-generational perspective on investments and a common vision for the sustainable growth and continued success of AEML. This investment demonstrates our confidence in India, with whom Qatar shares deep-rooted ties and excellent relations."
The transaction is expected to complete in early 2020.