572572020, “Three bids for An Amban's Delhi power dstrbution business - The Economic Times Tue Ecoxoic Ties Three bids for Anil Ambani’s Delhi power distribution business =, 4 ~ Mumbai: Italy's biggest utilty Enel Group is competing with homegrown private power producer-distributors Greenko and Torrent Power to acquire Reliance Infrastructure’s Delhi ‘electricity distbution business, said people aware ofthe matter. The Anil Ambani-ed Reliance Group is looking to sell assets to pay off lenders, The units India’s largest in terms of consumers, Reliance Infrastructure had hired KPMG to find buyers forthe 81% stake each itholds in BSES Rejdnani Power (BRPL) and BSES Yamuna Power (BYPL). The Delhi governmer ‘owns the remaining 49% in both, The three submitted bids last Friday to comply with the deadline, said people directly involved in the matter. Reliance Group Expecting Rs 5000 crore EV rid ae ve in “The asset was shown to several private equiy funds including Brooke, COPA and een Saared Capita, but onl thee submited bids, they said, The digence exercise wil begin alter the shot is drawn up, expctedin the coming week Reliance Group is expecting an enterprise valuation of Rs 6,000 crore, inclusive of dob, said sources, Reliance Group did not respond to queries. Enel and Greenko spokespersons declined to ‘comment eae ‘There was no response to emails sent on Saturday to Torrent Power. FY20 Combined LIQUIDITY PRESSURE ‘Ambani sold the Mumbai city power distribution business to Adani Transmission Ltd for Rs 18,800 crore in August 2018. Greenko and Torrent had also bid for that asset. Domestic S9% somes Nordomesic aex Adani has stayed away from competitive bidding this time, but some expect it Insti 5% join the fray later Ike last time, Others 10% (On Friday, a London court ordered Ambani to repay within 21 days an interim $717 milion owed to a Chinese banking consortium led by Industrial & Commercial Bank of China, the world's largest bank by assots. This was for loans taken by group company Reliance Communications, Ambani had faced the prospect of a jail term last year for delaying payments to Ericsson. Reliance Group and Tata Power supply power to about 93% of Delhi, The two BSES companies cater to 4.4 milion customers in the national capital, handling peak power demand of 4.8 GW. Last July, New Delhi touched an alltime high electicity demand of 7.4 GW. ‘Transmission and distribution losses have shrunk drastically since power distribution in the Capital was taken over by private operators. It registers the lowest aggregate technical and commercial loss of 9.7% against a 21.4% national average, hitpsaconomictinesindatimes. comindustylenergy/powerthcoe-ve-or-anl-ambans-del\-power-dstriouton-bz/printatle/7595864' cms 12572572020, “Three bids for An Amban's Delhi power dstrbution business - The Economic Times ‘Apart from being a marquee circle, bidders consider the high mix of residential and commercial users as a big positive. Only 6% of the user base is industria REGULATORY ASSET CLAIMS. However, analysis feel a key challenge would be the near-Re 30,000-crore regulatory asset (RA) claims that are yet to be approved by the regulator In FY18, the Delhi Electricity Regulatory Commission (DERC) approved Rs 12,000 crore of such claims. “Although the Appellate Tibunal for Electricity has approved a part of the company’s claims, itis yet to be reflected inthe tariffs, as DERC has to allow it in tanf orders," said Nitin Bansal, analyst at India Ratings —a credit rating agency. Regulatory assets get created when some of the expenditure is factored in by the regulator while calculating taifs and are adjusted later. Uni then, they are accounted for as RAs, “The company also owes around Rs 16,000 crore, predominantly to state generating companies,” said a senior executive ata rival ‘company, on condition of anonymity. "This is the reason why the enterprise valuation will be low after adjustment, Moreover, the politcal allegations over alleged inflated ‘expenses are stil pending in the courts.” ‘THE BIDDERS Companies such as Torrent were among the eariiet private utlities to enter power distribution and currently supplies power to ‘Ahmadabad, Surat, Agra and Bhiwandi.Ithas been looking at expanding is footprint. GIC and ADIA-backed Greenko is India's largest renewable company and is also one ofthe most acquisitive. Industry executive sald such an acquirer could reduce BSES's costs by switching to cleaner and cheaper fuel options, ‘The Centre has mandated al distrbution companies to purchase at least 21% of total energy requirements from renewable sources by FY22. Additionally, the discoms will not have to bear transmission charges and losses on this renewable power. Enel made its India debut in 2018, buying a majority stake in BLP Energy, the renewable venture of former GE India CEO Tejpreet Chopra. Ene!’s renewable arm, Enel Green Power, owns and operates 172 MW of wind capacity in Gujarat and Maharashtra, (This story has not bean edited by economictimes.com and is auto-generated from a syndlcated feed ws subscribe to.) ‘Stay ontop of business news with The Economic Times App. Download it Now! hitpsaconomictinesindatimes. comindustylenergy/powerthcoe-ve-or-anl-ambans-del\-power-dstriouton-bz/printatle/7595864' cms 2