Post the Pandemic led recovery session, the Power Sector in India has seen significant development and improvement. This has been accelerated by the growing need to consolidate the power sector in the country. The infrastructural and manufacturing indices in the country have spiralled down to the bottom owing to the impact of the Pandemic. There has been significant damage caused to the economic indicators in the country’s functioning. Noticeable changes however have taken place in the Government sector with mergers and acquisitions becoming a methodical way to trigger economic recovery.
IndiGrid on Friday said it has completed the acquisition of NER-II Transmission Ltd from Sterlite Power at an enterprise value of Rs 4,625 crore. India Grid Trust (IndiGrid) is the country’s most important and significant power sector Infrastructure Investment Trust (InvIT). IndiGrid merged and acquired the NER-II Transmission Limited Project. The estimated value at which the acquisition took place was estimated at 4,625 crores. After the acquisition, the asset capacity of IndiGrid has increased significantly. It now has assets worth Rs 20,000 crore with an increase of 34%. The platform’s asset portfolio now consists of 13 power generation projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 circuit kilometres and 13,350 MVA (MegaVolt Amperes) in 17 states and one Union Territory. The company has set up functioning subsidiaries in areas like Assam, Arunachal Pradesh, Tripura and other north-eastern states. Owing to the difficult accessibility options in these regions, power generation and transport is difficult. Therefore power stations are necessary for such places for the distribution of power so that they can help in the smooth running of manufacturing and subsequent industrial activities.
The acquisition is expected to bring about an improvement in the power generation and transmission industry of the country.