The debt-ridden Essel Group, controlled by Subhash Chandra, has entered into an agreement with Adani Green Energy to sell its 205-MW operating solar assets at an enterprise value of Rs 1,300 crore. On March 8, FE had reported the company was in talks with Adani and CPPIB for sale of its 685-MW solar portfolio on a piecemeal basis. The company is further working to close the divestment of additional 480-MW solar asset portfolio, the company said in a statement.
The assets, located in Punjab, Karnataka and Uttar Pradesh, have long-term power purchase agreements (PPAs) with various state electricity distribution companies. The Essel Group promoter’s debt was at Rs 11,000 crore, of which Rs 4,224 crore was reduced post the Oppenheimer deal, bringing the figure down to Rs 6,776 crore. With the latest announcement, the debt will come down further.
