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Adanis plan Rs 1,200-cr spend to upgrade Mumbai network

IBEF:  August 13, 2019

Adani Transmission plans to spend amount around Rs 4,000 crore (US$ 556 million) on capital expenditure in FY20, of which about Rs 1,200 crore (US$ 166.8 million) has been reserved for power distribution infrastructure in Mumbai, that the company had acquired.

This investment is important in power business and is crucial for Mumbai as the city hasn’t received many investments in past years. This investment will end the four-year long drought period and is three times what was spent earlier.

The company, which is the transmission business arm of the Adani Group, ventured into power distribution business by acquiring the Mumbai electricity distribution business from Reliance Infrastructure in 2018.

The group has reported a 26 per cent year-on-year growth with a net profit of Rs 213.4 crore (US$ 29.6 million) in first quarter of FY20. Revenue for the quarter increased 316 per cent on-year to Rs 2,889.7 crore (US$ 401.6 million), mainly due to the inclusion of the Mumbai distribution business which it did not own in the same quarter a year ago.

The company has operational transmission assets of 11,348 circuit kilometres and projects under execution of another 2,869 circuit kilometres.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.