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New Delhi: Adani Transmission Ltd (ATL), has received the letter of intent (LoI) for the acquisition of MP Power Transmission Package-II Ltd, incorporated by REC Power Development and Consultancy Ltd, the Adani Group firm said on Wednesday.

“ATL won the project through the Tariff-Based Competitive Bidding (TBCB) process and received the LoI on 14 September 2021. ATL will build, own, operate and maintain the transmission project in the state of Madhya Pradesh for a period of 35 years," the company said in a statement.

ATL has a transmission network of 18,800 circuit km, out of which 13,200 ckt km is operational and 5,600 ckt km is at various stages of construction. It has a target of setting up 20,000 ckt km of transmission lines by 2022. In comparison, state-run PGCIL’ transmission network has 169,829 circuit km of transmission lines, 257 substations and 105 gigawatts GW of inter-regional electricity transmission capacity. However, the state-run firm is no longer the central transmission utility (CTU) having the sole right to build transmission projects in the country.

“The project, ‘MP Power Transmission Package-II Limited’, consists of approximately 850 ckt km of Transmission Lines & Air Insulated Substations of various voltage levels (220kV and 132kV) in 18 Districts of Madhya Pradesh. With a capex of Rs.1,200 Cr, ATL’s execution of the project will strengthen the transmission system in Eastern Madhya Pradesh," the statement said.

India’s electricity demand is growing, with the country’s peak power demand recording an all-time high of 200.57 gigawatt (GW) on 7 July.

“As the leader in building power transmission infrastructure in the private sector, we are accelerating our pan- India presence through the competitive bidding process and also setting industry benchmarks in sustainable best practices. This newest project will allow us to contribute significantly to the development of the transmission infrastructure in Madhya Pradesh," Anil Sardana, MD & CEO, Adani Transmission Ltd said in the statement.

This comes in the backdrop of Adani Green Energy Ltd (AGEL) buying Japan’s SoftBank Group Corp’s and Bharti Enterprises Ltd owned solar power producer SB Energy India for an enterprise value of $3.5 billion. SB Energy India has a total renewable portfolio of 4.954 gigawatt (GW) spread across four states in India.

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