Adani Group’s power transmission company Adani Energy Solutions Ltd (AESL) is in advanced discussions to acquire the transmission assets of Hyderabad-based Megha Engineering & Infrastructures Limited (MEIL), in a move aimed at further strengthening its hold in the Indian power infrastructure space.
Sources say the deal is focused on Western UP Power Transmission Company Ltd (WUPPTCL), an operational transmission asset in western Uttar Pradesh. The enterprise value of this project is between Rs 6,000 crore to Rs 7,000 crore and may also include review of MEIL’s under-construction assets which may or may not be sold at this time.
Both Adani Energy and MEIL have not commented on this so far.
This comes at a time when MEIL is going through a family led restructuring as part of which PV Krishna Reddy is expected to buy his uncle PP Reddy’s 51% stake in the company for about Rs 15,000 crore, partly funded through asset monetization and global bank loans. The plan is to be completed by March 2027.
MEIL, a major infrastructure EPC company has built projects like Zoji-La Tunnel, Kaleshwaram underground pump house, several highways, ports and power projects. But has been under regulatory pressure. It was debarred for one year by NHAI after a structural failure on a section of NH-66 in Kerala and also saw Rs 14,000 crore of tenders cancelled in Mumbai last month.
Western UP Transmission Project Key Details
WUPPTCL is a wholly owned subsidiary of MEIL that operates under a long-term transmission service agreement (TSA) with four key state power distribution companies of Uttar Pradesh: Dakshinanchal, Purvanchal, Paschimanchal, and Madhyanchal Vidyut Vitran Nigams — all under U.P. Power Corporation Ltd.
The project involves:
- 7 substations
- 12 transmission lines
- Covering 819 circuit kilometers (ckm)
- Transmission capacity of 13,220 MVA
Built with an investment of over Rs 5,000 crore, the project is a vital backbone for power supply in western UP. MEIL promoters have invested around Rs 1,250 crore in equity for this venture.
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Source: Moneycontrol
News Desk
