Kalpataru Power Transmission Ltd (KPTL) said on Tuesday it has completed the sale of its 100 per cent entire stake in subsidiary company Kalpataru Satpura Transco Pvt Ltd (KSTPL) to CLP India Pvt Ltd.
CLP India is owned by CLP Group, one of the largest investor-owned power businesses in Asia, and Caisse de depot et placement du Quebec (CDPQ), one of Canada's leading institutional fund managers. Since 2002, CLP India has gradually grown its footprint to become one of the largest foreign investors in the Indian power sector.
KSTPL ceased to be a subsidiary of the company with effect from November 20 last year after KPTL received full consideration towards the sale.
But in terms of July 3, 2019 agreement between the KTL, Alipurduar Transmission Ltd (ATL) and CLP, the company was to transfer its entire 100 per cent stake in ATL to CLP upon achieving commercial operations of both the elements of transmission line, which was achieved in January this year.
The agreement, however, was recently terminated on account of non-fulfillment of certain conditions precedent as per the agreed terms. The company is now actively pursuing and evaluating opportunities to sell its stake in ATL to suitable investors.
KPTL had also entered into another agreement on July 3, 2019, to transfer its entire 74 per cent stake in Kohima Mari Transmission Ltd (KMTL) to CLP upon achieving commercial operations of the transmission line. The construction work relating to the KMTL project is progressing well and commercial operations are likely to be achieved by July or August.
Post commercial operations of the KMTL project and satisfaction of conditions precedent including obtaining the requisite regulatory and other approvals as stipulated under the agreement, the company will transfer its stake in KMTL to CLP.
Besides, KPTL is actively pursuing and evaluating opportunities to sell its stake to suitable investors in Jhajjar KT Transco Pvt Ltd (JKTPL) which has been operating since March 2012 and in which KPTL holds 49.72 per cent stake.
"We continue to make steady progress towards our commitment to sell our power transmission assets and non-core assets," said KPTL Managing Director and CEO Msh Mohnot.
"We have successfully transferred the Satpura Transmission Asset to CLP India Pvt Ltd in FY19-20. We are also actively pursuing and evaluating the opportunities to sell our Jhajjar transmission asset while evaluation of new buyers for Alipurduar Transmission Asset has already started," he said in a statement.
"We remain confident to complete the Kohima transmission asset as per the given timelines. The sale of assets will generate significant cash for KPTL and we remain confident of achieving our goal to be a debt-free company by end of March 2021," said Mohnot.
KPTL is one of the largest engineering, procurement and construction compes in India engaged in power transmission and distribution, oil and gas pipeline, railways, infrastructure development, civil contracting and warehousing and logistics business with a strong international presence in power transmission and distribution.
( With inputs from ANI )