RInfra, Adani may close Reliance Energy Mumbai sale by July
Mumbai, June 14: The Maharashtra Electricity Regulatory Commission (MERC) on Thursday completed its hearing in the proposed 100 per cent stake sale of Reliance Infrastructure Ltd (RInfra)'s integrated Mumbai power business to Adani Transmission Ltd (ATL), an official spokesperson said.
The MERC's order in the matter is likely over the next few weeks and the two companies expect to close the transaction, estimated at Rs 18,800 crore, next month.
The RInfra has already secured the approval of Competition Commission of India and its own shareholders for the deal.
The RInfra and ATL signed a Definitive Binding Agreement for 100 per cent stake sale of the integrated business of generation, transmission and distribution of power for Mumbai last December.
The RInfra will utilise the proceeds of this transformative transaction entirely to reduce its debt, becoming debt-free and up to Rs 3,000 crore cash surplus.
This is the largest ever debt-reducing exercise by any corporate in the country and the monetisation is a major step in RInfra's de-leveraging strategy for future growth.
The RInfra's Mumbai power business, Reliance Energy, is India's largest private sector integrated power utility distributing power to nearly three million residential, industrial and commercial consumers in Mumbai suburbs over an area of 400 sq.km.
It caters to a peak demand of over 1,800 MW, with annual revenues of Rs 7,500 crore with stable cash flows.
Going forward, RInfra will focus on upcoming opportunities in asset light EPC and defence businesses.
For its defence business, the company has set up the Dhirubhai Ambani Aerospace Park at MIHAN in Nagpur to manufacture the Rafale fighter jets with French collaboration, besides the Reliance Naval & Engineering Ltd, which houses India's largest dry dock facility to build warships and other naval ships.
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PM Modi attacks Cong, says it is known for "betraying" people
Bengaluru (PTI): Prime Minister Narendra Modi on Sunday attacked the Congress, accusing it of "failing" to provide good governance due to the internal power struggles in Karnataka, and "betraying" people.
He said that a "saffron sun" was rising from Bengaluru amid the BJP's expanding political influence across the country.
Addressing a large gathering of BJP workers in Bengaluru, Modi projected the BJP-led NDA as the embodiment of political stability and development, contrasting it with what he described as Congress' "politics of betrayal" and administrative failure in states ruled by the party.
"For the past three years in Karnataka, instead of resolving people's problems, most of the government's time here has been spent resolving internal conflicts. The Congress government remained gripped by uncertainty over leadership and power-sharing arrangements," the PM said.
Modi was referring to the ongoing power tussle between Chief Minister Siddaramaiah and his deputy D K Shivakumar for the past six months.
"They cannot decide how long the chief minister will remain. They cannot decide whether another person will get a chance or not. Everything has been kept hanging," he said.
Modi said the Congress government invariably faced anti-incumbency within months because the party lacked a governance agenda. "This is because Congress only knows how to betray people. They are false themselves, and their guarantees are also false. There is no chapter on governance in Congress' book of power," he said.
Claiming that the BJP represented stability in an uncertain global environment, Modi said recent election results across states reflected growing public support for the NDA's governance model.
Referring to the NDA returning to power in Puducherry for a second consecutive term, forming government again in Assam, BJP's electoral gains in West Bengal, and the party's sweeping victory in Gujarat local body polls, he said the results indicated a decisive political shift.
"These election results are important for the direction of Indian politics. They reflect the mood of India's youth, women, farmers, poor and middle class," Modi said.
"India's people are saying that they want speed, not scams; they want solutions. They want politics based on national policy," he said.
The Prime Minister said Karnataka had historically played a pivotal role in strengthening the BJP, even during the party's early years. "I can see that a saffron sun has risen today from the land of Bengaluru. Even when the BJP was not such a large party, Karnataka gave it tremendous strength," he said.
