CERC Nod Boosts Adani’s ₹2,704-Cr Gujarat Transmission Scheme

The Central Electricity Regulatory Commission (CERC) has granted in-principle approval to Navinal Transmission Limited (NTL), a wholly owned subsidiary of Adani Energy Solutions, to create a security interest over assets associated with its transmission project in Gujarat.

The approval pertains to the Network Expansion Scheme in the Navinal (Mundra) area, an inter-state transmission system project being developed under the Build, Own, Operate and Transfer (BOOT) model. The project came under NTL’s ownership after Adani Energy Solutions acquired the special purpose vehicle (SPV) in October 2024.

With an estimated project cost of ₹2,703.92 crore, the transmission scheme is being funded through a combination of debt and equity. Power Finance Corporation (PFC) has sanctioned a term loan of approximately ₹2,028 crore, while the promoter’s equity contribution is around ₹676 crore.

As part of the financing structure, NTL sought regulatory approval to create security over its movable and immovable assets, receivables, and project accounts through mechanisms such as mortgages, hypothecation, charges, pledges, and assignments in favour of lenders.

CERC observed that such security arrangements are common in capital-intensive infrastructure projects and are consistent with regulatory provisions that permit lenders to secure interests in project assets. The approval is expected to facilitate financial closure and support the timely execution of the transmission infrastructure project in Gujarat.

News by Rahul Yelligetti.