Kalpataru Power divests stake in Kohima‐Mariani Transmission Asset

KPTL remains focused on executing its strategy of pursuing growth in targeted core EPC businesses, optimising capital structure.

One of the largest specialized EPC (Engineering, Procurement, and Construction) companies, Kalpataru Power Transmission Limited (KPTL) and Techno Electric & Engineering Company Limited (TEECL), a joint venture partner in Kohima‐Mariani Transmission Limited (KMTL), have successfully completed the transfer of 49 per cent stake (i.e. 23 per cent by KPTL and 26 per cent by TEECL) in KMTL to Apraava Energy Private Limited (formerly known as CLP India Private Limited).

The remaining stake in KMTL will be transferred by KPTL in accordance with the terms of the Transmission Service Agreement (TSA). Kalpataru Power Transmission and Techno Electric & Engineering Company had entered into a binding agreement in July 2019 with Apraava Energy Private Limited to sell their respective stake in KMTL. KMTL was set up to implement a transmission system under North Eastern Region Strengthening Scheme (NERSS‐VI) on Build Own Operate and Maintain (BOOM) basis.

The project was won under a competitive bidding process conducted by PFC Consulting Limited (PFCCL). The project involved design, financing, construction, commissioning, operation and maintenance of 254 ckms (circuit kilometres) of 400 kV transmission line, 400/220 kV GIS Substation of 16 bay, 7x167 MVA capacity with remote security and remote communication features. The transmission line passes through three states i.e. Manipur, Nagaland and Assam. The project achieved full commissioning in the second half of 2020‐21.

To quote Manish Mohnot, Managing Director & CEO, KPTL from a filing with the exchange, “The transfer of stake in KMTL announced today along with earlier divestment of our T&D assets is in line with our strategy to reduce debt and invest in our future growth plans, including expanding our international presence. With the continuing momentum in the divestment of long‐term assets and non-core businesses, KPTL remains focused on executing its strategy of pursuing growth in targeted core EPC businesses, optimising capital structure. The consideration from the sale of KMTL will help us reduce our standalone debt by around Rs.700 crores.”

Kalpataru Power Transmission is a global EPC player with diversified interests in power transmission and distribution, oil and gas pipeline, railways and biomass-based power generation. The company is currently executing projects in over 40 countries and has global footprints in 62 countries. It has maintained a leadership position in all its major businesses backed by strong organizational capabilities, superior technical know-how and adherence to top‐class sustainability standards.

The scrip of Kalpataru Power Transmission touched an intra-day high of Rs 353.90 per share on BSE. At 11:12 AM, the stock is trading at Rs 350.00.

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