Adani Transmission is now the largest private operator of power transmission networks in the country after buying the transmission assets of Reliance Infrastructure (R-Infra).

The Anil Ambani-promoted R-Infra has signed a binding agreement with Adani Transmission to sell its power transmission business and use the proceeds to pare its debt. The company did not disclose the value of the transaction, but investment banking sources said it was expected to close at an enterprise value of over Rs 2,000 crore.

Adani Transmission recently also bought the transmission projects of GMR Infrastructure, taking its cumulative network to 10,800 circuit kilometres (ckm). Of this, 2,921 ckm are captive lines of Adani Transmission. Sterlite Power owns 7,000 ckm of independent transmission networks.

Sterlite Power owns 7,000 ckm of independent transmission networks. The other major players are Essel Infra, KEC and Kalpataru Power. State-owned PowerGrid Corporation is the largest power transmission company in the country, with a network of 131,000 ckm.

Gautam Adani, chairman of the Adani Group, said in a statement, “Adani Transmission will enjoy substantial benefit of scale and this is in sync with the company’s strategy to enhance value for stakeholders through organic and inorganic growth.”

Shares of Adani Transmission closed at Rs 43.05, up 2.95 per cent, and those of Reliance Infrastructure closed at Rs 591.05, up 1.30 per cent, on the BSE.

This deal also signifies power sector majors are shifting gears to transmission from generation. Experts said upcoming transmission projects for the private sector indicate growth of the sector. Power transmission projects worth Rs 15,000 crore are up for bidding in the current year.