In an important development, the Qatar Investment Authority (QIA) has signed an agreement to invest ₹32 billion (~$450 million) for a 25.1% stake in Adani Electricity Mumbai Limited (AEML).

As part of the transaction, both the entities have agreed to ensure that over 30% of the electricity supplied by AEML will be sourced from solar and wind power projects by the year 2023.

The AEML is a 100% subsidiary of Adani Transmission Limited (ATL). ATL was formed post the acquisition of Anil Ambani’s Reliance Infrastructure Limited’s integrated generation, transmission, and distribution utilities powering Mumbai city. It is the largest integrated power utility in the country.

According to Adani Electricity Mumbai, its total distribution network spans over 400 sq km catering to the needs of 2.9 million customers. Its market share of Mumbai is approximately 87% by license area, 67% by consumers served, and 55% by electricity supplied.

Chairman of the Adani Group, Gautam Adani, commenting on this latest development, said, “We are delighted to embark on this partnership with the Qatar Investment Authority. Together, we will continue to work towards improving the reliability of supply, and consumer satisfaction for over three million AEML consumers served in Mumbai. We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long-term partnership with QIA.”

The transaction is expected to be completed by early 2020, subject to regulatory approvals.

Earlier this year, the Maharashtra Electricity Regulatory Commission (MERC) had approved AEML’s request to initiate the bidding process for 700 MW of solar without the domestic content requirement condition through an e-reverse bidding process. The MERC had decided to allow the change after going through a petition filed by the AEML seeking a deviation from standard bidding guidelines.

Adani Transmission Ltd, last month, received two Letters of Intent from REC Transmission Projects Company to develop two transmission projects in the state of Gujarat. The projects were to be established on a build, own, operate, and maintain basis.