Greenko plans to buy 6k-cr power project

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LSE-listed Greenko Group is looking to acquire a Rs. 6,000 crore worth power transmission project in Uttar Pradesh developed by Hyderabad-based Megha Engineering Infrastructure Ltd (MEIL).

The project, secured by MEIL under competitive bidding, was commissioned in February. Industry sources said Greenko is in talks with Megha Engineering Infra to acquire the latter’s commissioned intra-state transmission project in western Uttar Pradesh.

In response to an mail sent by ET, MEIL said the establishment cost of the project is above Rs. 6,000 crore. But it denied comments on negotiations with Greenko. Greenko did not respond to a mail sent by ET.

“Greenko has been eyeing inorganic growth in the power transmission industry,” a person familiar with the development said. “It was earlier considering acquisition of solar and transmission businesses of Essel Infraprojects. The company is in advanced stage of discussions with MEIL.”

This person said Greenko has pulled out of the negotiations with Essel Infraprojects.

The intra-state 765KV high capacity transmission line from Mainpuri-Hapur and Mainpuri-Greater Noida was awarded to MEIL on build, own, operate, maintain and transfer basis in May 2011. The project would transmit 13,220 MVA power.

In a statement issued last month, MEIL said its order book stood at about Rs. 61,000 crore. This includes bookings of about Rs. 17,000 crore added during 2016-17.

Greenko had early this month announced signing of agreements for equity raising of $447 million from its existing investors GIC Pte Ltd and Abu Dhabi Investment Authority (ADIA).

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