Reliance completes stake sale in Power Grid transmission JV to IndiGrid for Rs 900 cr

• Reliance Infrastructure has completed the sale of its entire 74 percent equity stake in Parbati Koldam Transmission Company Limited, said the company

• The entire sale proceeds are being utilised for debt reduction

New Delhi: Reliance Infrastructure has announced the completion of the disinvestment of its entire shareholding in a power transmission joint venture with state-run Power Grid Corporation of India Ltd (PGCIL) for an enterprise value of Rs 900 crore, the Anil Ambani-led company said on Saturday. "Reliance Infrastructure Limited (RInfra) announce the successful completion of sale of its entire 74 percent equity stake in Parbati Koldam Transmission Company Limited (PKTCL) to India Grid Trust (IndiGrid) for an enterprise value of ~Rs.900 crore. RInfra owns 74 percent in Parbati Koldam Transmission Company Limited (PKTCL) located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Limited (PGCIL)," said the official statement released by the company.

Reliance Infrastructure to use proceeds of the sale for debt reduction

"The entire sale proceeds are being utilised for debt reduction. RInfra has reduced its total debt liabilities by ~6 percent from the deal proceeds," said the statement. The loss-making company had signed a deal with India Grid Trust (IndiGrid) in November 2020 for the sale of its 74 percent stake in the JV. The sale is part of Reliance Infrastructure's plan to reduce its debt by disinvesting assets.

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Reliance Infrastructure plans to be debt-free by FY21-end

Earlier in June 2020, Ambani had said that Reliance Infrastructure has plans to sell assets to reduce its debt and be debt-free by the end of FY2020-21. Before selling its stake in Parbati Koldam Transmission Company, Reliance Infrastructure had sold its Mumbai power business to Adani Transmission and its Delhi-Agra road project to Cube Highways and Infrastructure III Pte. The company's total financial debt, including short-term and long-term loans, stood at Rs 6,718 crore at the end of November 2020. 

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