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5 = Company Overview =
6
7 The Adani Group’s journey in the transmission sector started in 2006, well before Adani Transmission Limited (ATL, NSE:ADANITRANS) was formally established. This was necessitated by need to evacuate power from Adani’s Mundra thermal power plant. The dedicated lines, commissioned for evacuation of power spanned more than 3800 ckms connecting Mundra – Dehgam, Mundra – Mohindergarh and Tirora – Warora.{{footnote}}https://www.adanitransmission.com/about-us{{/footnote}}
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9 Another line spanning more than 1200 kms was commissioned in 2014 for evacuation of power from Adani’s Tiroda power plant. Subsequently, in 2015, looking at the enormous business potential in transmission sector, Adani Transmission Limited (ATL) was carved out of Adani Enterprises Limited (AEL) for a focused pursuit of opportunities in transmission sector. ATL has also tapped various inorganic avenues for growth and acquired GMR’s transmission assets in Rajasthan (2016), Reliance Infrastructure’s transmission assets in Gujarat, Madhya Pradesh and Maharashtra (2017) and KEC’s Bikaner Sikar transmission asset in Rajasthan (2019)
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11 In 2018, ATL forayed into the distribution space with the acquisition of Reliance Infrastructure’s Power Generation, Transmission & Distribution Business in Mumbai. Today, Adani Electricity Mumbai Limited (AEML) caters to electricity needs of over 3 million customers in Mumbai suburbs and Mira-Bhayender Municipal Corporation in Thane district with a distribution network spanning over 400 sq. kms.
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13 Today, ATL is the largest private transmission company and operates more than 11,000 ckt kms of transmission lines and around 18,000 MVA of power transformation capacity. ATL has further set an ambitious target to set up 20,000 circuit km of transmission lines by 2022 by leveraging both organic and inorganic growth opportunities.
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15 ATL firmly believes that environmentally and socially sustainable businesses are cornerstones of prosperous society. Therefore, the company continuously attempt to understand the needs and aspirations of the communities around it. ATL’s initiatives in areas of inclusive decision making, education, occupational health and safety, environment conservation (etc) are aligned with different indicators under 17 Sustainable Development Goals (SDGs).
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17 The company work actively with its implementation partner, Adani Foundation, on CSR programmes focused on education, community health, sustainable livelihoods and rural infrastructure development. Provision of better facilities for children in school / anaganwadi in Bhadai, Kheri Talwana, Ajwa, Saiyad Kherli villages of Gujarat / Rajasthan, construction of bus stands in Bhadai village, Mandvi, streetlight installation in Gokulpura and Piprali villages are some of its initiatives which have been appreciated by the local communities and made their lives better.
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19
20 [[image:ADANITRANS.jpg]]
21
22
23 == Key Milestones ==
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25 * India’s first private power sector player to secure an international investment grade rating
26 * India’s first and only private HVDC transmission line
27 * First Private Company in India to execute 765 KV Transmission lines & Substations in the state of Maharashtra
28 * First company to have executed a typical π (Pi) shape tower at Sami substation with 6 phases Quad Moose strung on same beam
29 * First private company to use a Pre-fabricated steel structure valve hall in India
30
31 = Business Segments =
32
33 == Power Transmission ==
34
35 Adani Transmission Limited (ATL) headquartered at Ahmedabad in Gujarat, is one of the largest private sector power transmission companies in India with a presence across the western, northern and central regions of India. ATL owns and operates various High voltage AC transmission lines and substations of 132kV, 220kV, 400kV, 765kV voltage level and also High Voltage DC transmission lines and substations of +/- 500kV voltage level. Today, ATL has portfolio of more than 14,000 ckt km of transmission lines and around 27,000 MVA of power transformation capacity.{{footnote}}https://www.adanitransmission.com/power-transmission{{/footnote}}
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37 ATL primarily aims at addressing the vast potential in India’s transmission sector and has set an ambitious target to set up 20,000 circuit km of transmission lines by 2022. ATL has invested in the latest technologies resulting in the highest network availability of over 99.76% in the country, which corresponds to the best global standards.
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39 * Adani Transmission Bikaner Sikar Private Limited
40 * Adani Transmission (India) Limited (ATIL)
41 * Adani Transmission (Rajasthan) Ltd. (ATRL)
42 * Aravali Transmission Service Company Ltd (ATSCL)
43 * Barmer Power Transmission Service Ltd. (BPTSL)
44 * Bikaner Khetri Transmission Limited
45 * Chhattisgarh-WR Transmission Ltd. (CWRTL)
46 * Fatehgarh- Bhadla Transmission Limited (FBTL)
47 * Ghatampur Transmission Limited
48 * Hadoti Power Transmission Service Ltd
49 * Jam Khambaliya Transco Limited
50 * Kharghar Vikhroli Transmission Private Limited
51 * Lakadia Banaskantha Transco Ltd
52 * Maharashtra Eastern Grid Power Transmission Limited (MEGPTCL)
53 * Maru Transmission Service Company Ltd (MTSCL)
54 * North Karanpura Transco Ltd. (NKTL)
55 * Obra-C Badaun Transmission Ltd. (OBTL)
56 * Raipur-Rajnandgaon-Warora Transmission Ltd (RRWTL)
57 * Sipat Transmission Limited(STL)
58 * Thar Power Transmission Service Ltd (TPTSL)
59 * Western Transmission (Gujarat) Ltd. (WTGL)
60 * Western Transco Power Ltd. (WTPL)
61 * WRSS XXI (A) Transco Limited (WTL)
62
63 == Power Distribution ==
64
65 The distribution arm of the Adani Transmission Limited (ATL), Adani Electricity Mumbai Limited is India’s largest private sector power distribution utility, distributing electricity for over 9 decades in Mumbai, the commercial capital of India.{{footnote}}https://www.adanitransmission.com/power-distribution{{/footnote}}
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67 Adani Electricity meets close to 2,000 MW of power demand in Mumbai’s largest and the most efficient power distribution network. It provides world-class customer care services with the help of advanced technologies. Adani Electricity plans to expand its presence in newer geographies in pursuit of India’s vision of ‘Power for All’.
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69 **Adani Electricity Mumbai Ltd**
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71 Since its inception in 1926, AEML has been the primary supplier of electricity to Mumbai, serving approximately 67% of its population and approximately 85% of its geographic area. AEML services consumers in suburban Mumbai and the Mira-Bhayandar Municipal Corporation area in the Thane District (adjoining Mumbai), spanning an area of over 400 sq. km. The company's integrated electricity GTD utility, provides electricity to over 3.04 Million households with an outreach to over 12 Million consumers of Mumbai and an annual energy requirement of over 10,800 MUs.
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73 Mumbai, the state capital of Maharashtra, is also India’s financial capital and one of the top 10 centres of commerce in the world. It is the seventh most populous city in the world, the 24th richest city in the world (based on USD GDP) and its’s real GDP growth between FY12 and FY18 was approximately 11% per annum. Mumbai contributes approximately 6% to India’s real GDP. The average per capita income of Mumbai residents is approximately $ 8,700, which is approximately four times the per capita income of an average Indian resident. Further, the electricity consumption of Mumbai for FY19 was 18,341 MUs. The average electricity bill of its consumers in FY19 was approximately $ 95, which was approximately 1.1% of the per capita income of the average Mumbai resident.
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75 The company's integrated electricity supply system also includes 541 ckm of 220 kV transmission lines, consisting of overhead and underground cable systems, eight 220/33 kV EHV stations, 115 220 kV bays and 285 33 kV bays, with installed transformation capacity of 3,125 MVA and embedded 500 MW of power generation. The company's ‘grid-to-switch’ integrated platform makes it one of the largest private integrated electric utilities in India.
76
77 = Industry Overview =
78
79 The Indian power sector has been a key driver for the country’s socioeconomic growth since independence. With a customer base of more than 200 Million and service outreach spanning nearly 3.28 Million sq. km, the Indian power system is one of the largest and most complex power systems in the world. After the creation of the national grid post the integration of the five regional grids, the system now operates as a ‘one nation–one frequency–one market’ entity. In recent years, there has been substantial growth in installed generation capacity as well as Transmission and Distribution (T&D) infrastructure. India has achieved universal 100% electrification through the SAUBHAGYA scheme by providing electricity to more than 2.6 crore households with 100% village electrification.{{footnote}}https://www.adanitransmission.com/-/media/Project/Transmission/Investor/documents/Annual-Report/Adani-Transmission-Limited_Integrated-Report_2019-20.pdf{{/footnote}}
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81 == Power Generation ==
82
83 There was a sustained decline in domestic power generation from June–November 2019, which can be partly accredited to the extended monsoons. In addition, the lower demand mainly from the industrial sector due to subdued economic activity and the lower purchase of power by the financially stressed power distribution companies, affected production. Domestic power generation continues to be led by conventional energy, which accounts for 90% of total generation. However, the growth in generation from conventional sources lagged behind that of renewable energy sources
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85 The national electric grid in India has an installed capacity of 370.1 GW as of 31st March 2020. Renewable power plants, which also include large hydroelectric plants, constitute 35.86% of India’s total installed capacity. The total installed capacity is expected to grow from 369 GW to 1,000 GW by 2032. India’s power supply scenario has remarkably improved as a result of increased availability of electricity that has surpassed the growth in its requirement. During FY20, the energy deficit and peak deficit has been reduced to 0.5% and 0.7%, respectively.
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87 The peak demand is expected to grow at 5.6% and likely to cross 370 GW while the energy requirement is expected to increase at 5.2% and likely to exceed 2,500 Billion Units (BUs) by 2032, respectively.
88
89 == Renewable Energy ==
90
91 India continues to grow its adoption of renewables, leading to significant drop in the cost of wind and solar power. In order to achieve the objectives, in 2015–16 the Government of India released a roadmap to achieve 175 GW of Renewable Energy (RE) capacity by 2022, which is one of the key actions to meet its commitments towards COP21 obligations. This roadmap also underlines its pledge to grow as a low carbon emitter. India’s Intended Nationally Determined Contribution (INDC) commitments aim to reduce emission intensity of GDP by 33–35% by 2030 from the 2005 level and to achieve 40% of  installed capacity from non-fossil fuel by 2030.
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93 According to a report by the International Energy Agency (IEA), the strong growth of renewables in India now accounts for almost 23% of the country’s total installed capacity. Further, energy efficiency improvements in India avoided 15% of additional energy demand, oil and gas imports, and air pollution – as well as 300 MT of CO2 emissions between 2000 and 2018. As per the report, increased access to affordable energy has raised the living standards of all segments of the country’s population and adds that it believes India now has the institutional framework it needs to attract more investment for its growing energy needs. By raising the level of its energy efficiency ambition, India could save some $ 190 Billion per year in energy imports by 2040 and avoid electricity generation of 875 terawatt-hours per year, accounting for almost half of India’s current annual power generation.
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95 There is a significant transformation in the energy mix in India. Progressively declining costs, improved efficiency and reliability have made renewable energy a viable option for fulfilling India’s energy needs in a sustainable manner, while also helping it pursue its commitment to the 2015 Paris agreement. The growth of renewable resources in India’s generation mix has grown from 6.7% in 2016 to 24.47% in 2019 (installed capacity), signalling a significant transition underway from coal-fired power
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97 As a result, over the last decade, while the installed power generation capacity has experienced significant growth (at a CAGR of 9.3%), capacity addition through RE sources has exhibited a remarkable CAGR of 19% since 2006-07. The contribution of RE sources to the installed capacity has increased from 6% in 2006-07 to 22% in 2018-19. As per the latest CEA estimates, capacity addition in RE would achieve 227 GW by 2022 and 500 GW by 2030.
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99 == Power Transmission Sector ==
100
101 The backbone transmission system in India is mainly through 765 kV, 400 kV and 220 kV AC networks, with the highest transmission voltage level being 800 kV (HVDC). India has total transformation capacity and transmission line length of 9.62 lakh MVA and 4.23 lakh ckt km, respectively, as on February 2020.
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103 With changing generation mix on account of increased renewables, the government is emphasising on augmentation of transmission infrastructure to support demand growth. In order to expedite the development of transmission lines for solar parks, the government has decided to award these projects to private players through Tariff-based Competitive Bidding (TBCB). However, TBCB route-based transmission projects have witnessed very limited participation by the private sector, despite ~~30-40% reduction in tariff discovered through TBCB route as opposed to the Regulated Tariff Mechanism (RTM) norms of the cost-plus route.
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105 As per the CEA Transmission Perspective Plan 2016, major high capacity transmission corridors have already been implemented/awarded or are already planned for implementation, which would meet the inter-regional import/export of power till FY22. Resources have been identified in various states to meet India’s ambitious renewable energy target in the renewable energy zones comprising wind, solar or both energies. Additional solar capacity of 50 GW and wind capacity of 16.5 GW is envisaged in 7 RE rich states too. This also indicates that over the next 5 years, India’s transmission grid needs to keep pace with the country’s increasing renewable and non-renewable power generation capacity. As per the economic survey 2018-19, additional $ 250 Billion investment in renewable energy will be required by 2023-30.
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107 India remains underinvested in the transmission sector; however, the future looks very promising, especially with the plans for rollout of government projects to boost transmission. After evaluating the central and state governments’ planning documents, the total market size of transmission projects is estimated to be C 3.4 Trillion till 2025.
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109 == Power Distribution Sector ==
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111 Access to reliable and affordable electricity supply is an important factor for a country’s socio-economic development. Distribution is the most important link in the entire power sector value chain for providing non-stop, quality and reliable power supply. The distribution companies in India have been confronting various challenges such as the control of Aggregate Technical and Commercial (AT&C) losses, improvement in operational efficiencies, provision of round-the-clock electricity access to all households, which has jeopardised the commercial viabilities of the distribution company (DISCOMS).
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113 == Impact of COVID-19 ==
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115 The domestic power sector is feeling the impact of the global spread of the virus and the resultant lockdowns. It has not only led to a fall in electricity consumption but has obstructed the supply of key inputs for generators, which would cause project delays, thereby resulting in time and cost overruns. It is also adding to the financial stress of power producers and DISCOMS. The severity of the impact is difficult to ascertain, given the uncertainty associated with containing the spread of the virus.
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117 The daily power demand in the country has fallen by 25% since mid-March 2020, when most parts of the country imposed restriction and shutdowns. Electricity consumption in the country fell from 3,494 MUs on 16th March 2020 to 2,628 MUs on 28th March 2020. The drop in consumption has been notably higher touching almost 30% in the northern and western regions of the country. The southern regions have reported a decline of 19%
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119 Generators and DISCOMS are being impacted with dwindling finances due to the imposed lockdown. The latter are unable to collect payments from consumers and they, in turn, are not paying generators. State governments would further delay the release of subsidies. Given that usually most of the payments for past supply are collected/made towards the end of the financial year (March), the delays would have significant financial implications. Despite states making monthly payments to generators since August 2019, after the power ministry made it mandatory for DISCOMS to maintain LC as payment security for power purchases, there exists sizeable past dues that need to be cleared. Further, the fall in demand would impact revenues of generators and distributors alike.
120
121 = Financial Highlights =
122
123 May 09, 2020  Adani Transmission Ltd. (“ATL”), reported its results for Q4 FY20 and FY20.{{footnote}}https://www.adanitransmission.com/newsroom/media-releases/OperationalandFinancialResultsFY20{{/footnote}}
124
125 **FY20 - Operational:**
126
127 * Transmission availability maintained at 99.76%
128 * Transmission line of 129 ckt kms got operational
129 * Won 6 new transmission projects including Mumbai - HVDC
130 * Distribution loss reduced to 7.37%
131 * Sold 8,455 million units (up 79 million units YOY)
132 * Maintained supply reliability at 99.99% (ASAI)
133
134 **FY20 - Financial:**
135
136 * Consolidated Operational Revenue up 57% at Rs. 10,237 Cr
137 * Consolidated Operational EBITDA up 50% at Rs. 4,287 Cr
138 * Operational EBITDA margins at 91.8% in Transmission and 24.0% in Distribution
139 * PBT up by 32% to Rs. 1,107 Cr
140 * PAT up by 26% to Rs.707 Cr
141 * EPS up 27% at Rs.2.94
142 * Net cash generation of Rs. 1,043 Cr
143
144 **Financial Performance for FY20:**
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146 FY20 operational revenue up 57% YOY at Rs. 10,237 Cr on the back of strong revenue contribution from seven newly operational SPV’s(3) in transmission and AEML full year contribution.
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148 Operational EBITDA of Rs. 4,287 Cr, up 50% YOY due to Rs 596 Cr of EBITDA contribution from seven newly operational SPVs and strong contribution from distribution business.
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150 Transmission EBITDA margin at 91.8% due to operational efficiency and higher contribution from newly operational SPV’s. Strong Distribution EBITDA margin at 24.0%.
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152 Consolidated PAT of Rs. 707 crore, up 26% yoy.
153
154 **Other Key Highlights:**
155
156 ATL continues to focus on freeing up its equity, reducing cost of debt and bringing in marquee partners to set global corporate practices.
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158 ATL successfully completed its maiden US Private Placement of USD 400 Million in Feb-Mar 2020.
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160 Completion of Qatar Investment Authority (QIA) investment in AEML.
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162 AEML completes first ever USD bond issuance by a private integrated utility from India, raising USD 1 Billion in February 2020.
163
164 = Recent developments =
165
166 **July 06, 2020**:Adani Transmission Ltd (ATL), India’s largest private sector power transmission company, has signed definitive agreements with Kalpataru Power Transmission Ltd. (KPTL) for acquiring Alipurduar Transmission Ltd. in a manner consistent with Transmission Service Agreement and applicable consents. The Enterprise value for the project is ascribed as INR 1,286 crore. The acquisition is expected to be completed in few months, subject to all necessary regulatory approvals and other consents.{{footnote}}https://www.adanitransmission.com/newsroom/media-releases/2020_07_06-Alipurduar-KPTL{{/footnote}}
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168 The acquisition is in sync with ATL's strategy to enhance the value for its stakeholders, through organic as well as inorganic opportunities. With this acquisition, the cumulative network of ATL will reach more than 15,400 ckt kms, out of which more than 12,200 ckt kms (including this asset) is operational and more than 3,200 ckt kms is under various stages of execution. With this scale of operations, ATL will enjoy substantial benefits in terms of cost optimization, shared resources and will fortify its position of being the largest private sector transmission company in the country.
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170 June 26 , 2020:  Adani Transmission Ltd (ATL), India’s largest private sector power transmission company, has signed a Share Purchase Agreement and completed the acquisition of the SPV, Kharghar Vikhroli Transmission Private Limited (KVTPL), incorporated by Maharashtra State Electricity Transmission Company Ltd (MSETCL). ATL had won this project through Tariff Based Competitive Bidding and received the Letter of Intent (LoI) in December 2019. ATL will build, own, operate and maintain the transmission project in the state of Maharashtra for a period of 35 years.{{footnote}}https://www.adanitransmission.com/newsroom/media-releases/2020_06_26-ATL-Khargar-Vikhroli{{/footnote}}
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172 The project “Kharghar Vikhroli Transmission Private Limited” comprises of approximately 34 km of 400 kV and 220 kV transmission lines along with 1500 MVA 400kV GIS Substation at Vikhroli in Mumbai. This project is critical to the city of Mumbai as the existing capacity of transmission corridor is not sufficient to carry further power into the city. This project would enable additional power to be brought into Mumbai and would thus help in meeting the future demand of the city.
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174 With this project, the cumulative transmission network of ATL will reach more than 14,808 ckt kms of transmission line and more than 27,000 MVA transformation  capacity, out of which more than 11,576 ckt kms and more than 18,330 MVA are under steady state operation. ATL also operates an integrated GTD  business serving more than 3 million customers in Mumbai.
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176
177 **Adani to complete 1,000 MW transmission line to Mumbai by December 2022 **{{footnote}}https://www.moneycontrol.com/news/business/adani-to-complete-1000-mw-transmission-line-to-mumbai-by-december-2022-5980241.html{{/footnote}}
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179 October 19, 2020; Adani Transmission Ltd (ATL) affirmed that it will be able to execute a transmission line and sub-station project at suburban Vikhroli which will enhance the power supply by 1,000 MW to the financial capital, by the end of next year, as per the mandated deadline for it.
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181 In a review meeting taken following last Monday''s power outage, Maharashtra Chief Minister Uddhav Thackeray had asked all stakeholders to expedite the project by adhering to the timelines.
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183 Trains had been stuck on tracks, businesses affected and work from home employees impacted as the financial capital plunged into darkness last Monday that lasted up to 14 hours in some pockets.
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186 "Adani is committed to completing the Kharghar-Vikhroli transmission line project within the timeline set by Thackeray," a spokesperson for Adani Group said in a statement.
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188 In the statement, ATL said there will be growth in power load in the megapolis and the mismatch between generation and load growth, it is now committed to executing two critical transmission projects that would help channelise additional power to Mumbai.
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190 These capacity enhancement projects will create an additional transmission capacity of 1,000 MW each, thereby easing the existing transmission corridors, it added. It includes the Kharghar-Vikhroli 400/220 kV EHV transmission line project, which will add a 1,000 MW power supply corridor and will also be Mumbai''s first 400 KV Substation.
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192 A recent news report had said that there was a dispute between Tata Power and ATL which has now been resolved with the former agreeing to provide land for the project. The project was reportedly approved in 2009 and awarded to ATL in 2019.
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194
195 ATL on Sunday said it has already placed orders for all critical equipment and service contracts, which are vital for project completion, including towers and insulators. It has also completed 80 per cent of engineering and is working with authorities to get possession of land parcels at Kharghar and Vikhroli.
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197 Apart from the Vikhroli-Kharghar line, a second project involves an 80-km link between Maharashtra State Electricity Transmission Company''s (MSETCL) 400 kV Kudus & Adani Electricity Mumbai''s (AEML) 220 kV Aarey EHV Substation which will be a first of its kind underground high voltage DC cabled system that can get an additional 1,000 MW of power.
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199 Adani has initiated land procurement, completed survey works, filed applications for Regulatory, right of way and other statutory clearances, awarded consultancy contracts for system studies and is in the process of raising capital and finalizing awards for project execution, the statement said.
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201
202 **Adani Trans Standalone December 2020 Net Sales at Rs 304.72 crore, up 58.39% Y-o-Y **{{footnote}}https://www.moneycontrol.com/news/business/earnings/adani-trans-standalone-december-2020-net-sales-at-rs-304-72-crore-up-58-39-y-o-y-2-6453751.html{{/footnote}}
203
204 **February 05, 2021;** Reported Standalone quarterly numbers for Adani Transmission are:
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206 Net Sales at Rs 304.72 crore in December 2020 up 58.39% from Rs. 192.38 crore in December 2019.
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208 Quarterly Net Loss at Rs. 4.04 crore in December 2020 up 56.37% from Rs. 9.26 crore in December 2019.
209
210 EBITDA stands at Rs. 172.76 crore in December 2020 down 10.71% from Rs. 193.48 crore in December 2019.
211
212
213 = References =
214
215 {{putFootnotes/}}
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