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    Adani Transmission to invest over Rs 5,000 crore in each of the next two financial years

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    Adani Transmission to invest over Rs 5,000 crore in each of the next two financial years

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    Adani Transmission MD & CEO Anil Sardana told CNBC TV-18 that the company has no problem of receivables whatsoever, barring a few states which cause delays in payments. For the April-June period of FY23, Adani Transmission had a collection efficiency of 98.61 percent.

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    Electric power transmission company Adani Transmission Ltd. is aiming to add more capacity for which it is willing to invest over Rs 5,000 crore in each of the next two financial years.
    "That number, will hopefully always continue to be above Rs 5,000 crore even in the coming years," MD & CEO Anil Sardana told CNBC-TV18 on the sidelines of the Motilal Oswal conference.
    Adani Transmission is the largest private transmission and distribution company in the country. Incorporated in 2006, the company is now holding a portfolio of 18,795 circuit kilometer (ckm) of transmission lines and 40,001 MVA of power transformation capacity across 13 states in India.
    In 2017, the Adani Group had acquired Reliance Infra's power business in an Rs 18,800 crore deal. Last week, Reliance Infra filed an arbitration claim of Rs 13,400 crore against Adani Transmission for "breach of terms" with regards to this deal. On their part, Adani Transmission rejected Reliance Infra's claims, citing that the latter had initiated arbitration on one specific dispute under the share purchase agreement with a claim of Rs 500 crore. It went on to add that Reliance Infra has not yet settled Adani Electricity's significantly large claims under the share purchase agreement.
    Sardana is hopeful that there will be an early resolution in this matter, adding that nothing will change for the customers or the Mumbai distribution regime.
    For the April-June period of FY23, Adani Transmission had a collection efficiency of 98.61 percent. Sardana told CNBC TV-18 that the company has no problem of receivables whatsoever, barring a few states which cause delays in payments. However, it imposes a late-payment surcharge to mitigate any payment delays.
    The Solar Energy Corporation has invited proposals to supply 2.25 Gigawatts of round-the-clock power from Inter-State Transmission Systems (ISTS)-connected renewable power projects. This will be done through a Tariff-based competitive bidding process (TBCB). Sardana is confident of more such opportunities in the future as demand for renewable projects improves. "One will have a lot of opportunities," he said.
    Other Key Takeaways:
    • Will continue to maintain healthy return ratios
    • The risk profile will continue to remain low
    • Want to continue to remain investment grade
    • Remain optimistic about the distribution business
    • Will apply for opportunities in other licensed areas going forward
    • Shares of Adani Transmission are the second best performers among the Adani Group companies this year, with gains of 133 percent.
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