In a move to expand its energy infrastructure portfolio, Adani Group’s power transmission and distribution arm, Adani Energy Solutions (AESL), is in talks to acquire the transmission assets of Hyderabad-based Megha Engineering & Infrastructures Limited (MEIL), people familiar with the matter told Moneycontrol.
At the centre of the potential deal for transmission assets is Western UP Power Transmission Company Limited (WUPPTCL), an operational transmission project located in western Uttar Pradesh.
Sources have indicated that Adani Energy Solutions, previously known as Adani Transmission, is also evaluating the possibility of acquiring MEIL’s other under-construction transmission assets, though it is likely that these may not be sold at this point of time.
The deal is likely to peg the enterprise value of the Uttar Pradesh transmission project at around Rs 6,000-7,000 crore, according to people cited above who requested anonymity as discussions are private.
Adani Energy Solutions and MEIL did not respond to queries from Moneycontrol at the time of publication, and the story will be updated if they respond.
The deal talks have come amid a larger family settlement discussion between MEIL’s founding duo — the uncle-nephew pair P Pitchi Reddy and PV Krishna Reddy — as they work to restructure ownership of the construction conglomerate.
Established in 2006, MEIL has a strong presence across sectors such as irrigation, water supply, sewerage treatment, roads, power, and hydrocarbons. The company has built a reputation as a key EPC player in large-scale infrastructure projects.
The Economic Times had on June 9 reported about a family settlement plan involving PV Krishna Reddy acquiring his uncle PP Reddy's 51% stake in MEIL for approximately Rs 15,000 crore. The settlement plan is to be implemented by March 2027. The buyout is being funded through asset monetizations along with financing from global banks. Approximately Rs 1,000 crore has already been paid as part of the settlement plan, the publication had reported.
Under the uncle-nephew duo, MEIL has developed several high-profile infrastructure projects across sectors. These include the Zoji-La Tunnel in Ladakh, the world’s largest underground pump house at Kaleshwaram in Telangana and key packages of the Mumbai-Nagpur Expressway. The company is also building deep-water ports, large-scale drinking water projects like the Ganga supply scheme, and major energy ventures including nuclear reactors.
Western UP Transmission Project
WUPPTCL, a wholly-owned subsidiary of MEIL, operates under a long-term transmission service agreement with four major UP state discoms — Dakshinanchal Vidyut Vitran Nigam Limited, Purvanchal Vidyut Vitran Nigam Limited, Paschimanchal Vidyut Vitran Nigam Limited, and Madhyanchal Vidyut Vitran Nigam Limited. These discoms are owned by U.P. Power Corporation Limited.
The WUPPTCL project involves seven substations and 12 transmission lines spanning approximately 819 circuit kilometers (ckm). It boasts a massive transmission capacity of 13,220 Megavolt Ampere (MVA), playing a critical role in ensuring reliable power supply across western Uttar Pradesh.
Built at a cost exceeding Rs 5,000 crore, the project was funded through a combination of debt and equity, with MEIL promoters contributing approximately Rs 1,250 crore in equity capital.
Adani Energy Solutions Expansion
For Adani Energy Solutions, the proposed transaction aligns with its strategy of consolidating its leadership in India's transmission sector.
AESL is already the country’s largest private transmission company, operating across 16 states with a cumulative network exceeding 26,600 ckm and a transformation capacity of over 93,200 MVA. The firm also distributes electricity to over 12 million consumers in metropolitan Mumbai and the industrial belt of Mundra SEZ, and is rapidly expanding its smart metering business, with an order book surpassing 22.8 million meters.
This proposed acquisition adds to a series of deals that AESL has pursued to scale up its transmission footprint. In the past, the company has completed several strategic acquisitions, including the acquisition of the Warora-Kurnool Transmission Project from Essel Infraprojects for approximately Rs 3,370 crore in 2021.
In 2018, the company had taken over Anil Ambani led Reliance Infrastructure's Mumbai electricity distribution business in a Rs 18,800 crore deal.
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