https://www.telegraphindia.com/business/how-mumbai-is-left-at-the-mercy-of-adanis/cid/1920609?s=08 6.02.23 Extracts from the article.. The risks arise from the fierce collateral terms attached to the $1-billion Senior Secured Notes that Adani Electricity Mumbai Ltd (AEML) floated in February 2020 — just 18 months after the Adani group gained control of beleaguered tycoon Anil Ambani’s Reliance Infrastructure Ltd...The terms of the loan covenant are not widely known because AEML is an unlisted company — and that means the city of Mumbai, its financial regulators, financial institutions, banks and market authorities are possibly unaware of the powder keg they might be sitting on.
The private sector was allowed to enter the power transmission business only in 1991 even though a few players like CESC and Tata Power had been involved in generation and distribution for several decades.
Section 17(3) of the Electricity Act, 2003, says: “No licensee shall at any time assign his licence, or transfer his utility, or any part thereof, by sale, lease, exchange or otherwise without the prior approval of the Appropriate Commission.” .. It is hard to believe that the authorities could have envisaged a situation where the licence could be assigned to a bunch of creditors. The Adanis are probably the first power utility to assign their licence in the manner that they have done.
Comment: on Whatsapp.. For the last two months Bombay has been lit like a Christmas tree. First for one meeting of g20, then inauguration of one small segment of the metro by PM, and republic day.. new government etc... Wonder who is footing the bill to whom!!!!
There is more: the investors in the Notes also hold the rights to AEML’s transmission and distribution licences, issued by the Maharashtra Electricity Regulatory Commission (MERC)