Areva puts Indian T&D arm on the block

French company Areva has put its India arm Areva Transmission and Distribution (T&D) on the block, reports CNBC-TV18's Raja Rajeshwari. However, the company has not specified a reason or the timeframe for the sale. The parent company holds about 72% in Areva T&D.

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Here is a verbatim transcript of Raja Rajeshwari's comments on CNBC-TV18. Also watch the accompanying video.

Late on Tuesday night, French company Areva sent out a press release that said the company's T&D division is up for sale. The company has nuclear capacity apart from the T&D division and has taken a call to strengthen its balance sheet by exiting its T&D assets.

Areva had, two years ago, created two divisions: Areva T&D and a separate public company for its nuclear expansion and division, which often led to questions about why the two divisions distinct - the company's official response was: the nuclear division needed a lot capex and it made it easier to pump in money.

Areva, the global company, has about 70% in Areva T&D. The latter is well-owned by institutions, which hold the remaining 30%. The stock is now expected to go up because whoever buys the parent company may have to make an open offer for holders.

Areva Global Company, in its press release, said it will call for an open bid and whichever party pays the highest price get the division. Apart from price, Areva is also expected to keep in mind to what the its labourers say - there already is talk about labourers protesting the sale.

Alstom and Siemens have been in the run for the company for some time. Whatever happens on a global level, one could look for some consolidation at the Indian level too, because both Alstom, Siemens have their Indian subsidiaries here.