IndiGrid says two new transmission projects will add 3% to AUM
In an interview with CNBC-TV18, Harsh Shah, CEO of IndiGrid InvIT Fund, highlighted the magnitude of these projects, emphasising that their combined size is a little over ₹1,000 crore.
IndiGrid, India's inaugural and largest Infrastructure Investment Trust (InvIT) specialising in the power transmission sector, clinched two inter-state transmission projects.
Harsh Shah, CEO of IndiGrid InvIT Fund, said their combined size is a little over ₹1,000 crore. This addition is expected to contribute around 3% to the assets under management (AUM), which currently stands at approximately ₹27,000 crore.
"In the last 12 months, we have added ₹4,000 crore of renewable energy assets, and now we are incorporating an additional ₹1,000 crore. With a pipeline of about ₹5,000 crore in 2023, we are content with our progress."
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The initial project involves evacuating power from the Dhule 2GW renewable energy zone, incurring annual transmission charges of ₹53 crore post-commissioning. The subsequent venture includes constructing two substations in Madhya Pradesh, with annual transmission charges of around ₹62.5 crore post-commissioning.
Shah noted that these projects have a construction timeline of approximately 24 months, with expected EBITDA contributions to overall cash flows starting from 2026-27.
Also Read | NLC India targeting 6 gigawatts of renewable capacity by 2030 in line with global climate goals
Discussing debt, Shah stated, "Currently, we are at 60% net debt to AUM, allowing us to acquire another ₹5,000-6,000 crore of projects. As we acquire more assets, the net debt as a percentage of AUM decreases. We will continue this cycle to enhance our distribution per unit (DPU)."
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