Reliance Infrastructure has entered into a share purchase agreement with Adani Transmission Limited (ATL) to sell its Western Region System Strengthening Scheme (WRSSS) transmission assets as well as 74% stake in Parbati Koldam Transmission Company Limited (PKTCL).

While the WRSSS transmission business is valued at around Rs 1,000 crore, a 74% stake in PKTCL is also has a similar valuation.

Reliance Infrastructure intends to utilise the proceeds to pay off its debt. These deals will help the firm pare its debt by Rs 2,000 crore.

On the other hand, Adani would gain three projects – WRSSS B (around 2,089 circuit kilometre), WRSSS C (around 974 circuit km) and PKTCL (458 circuit km). With this buy, Adani’s transmission network will surpass 10,000 circuit km.

At present, Reliance Infrastructure’s standalone debt is Rs 14,000 crore. Post the deal, it will go down by Rs 1,500 crore to Rs 12,500 crore. Similarly, the consolidated debt, which stands at Rs 21,000 crore, is likely to reduce to Rs 19,000 crore.

As part of the plans to offload its non-core businesses, Reliance Infra in August this year had sold its cement arm to Birla Corporation for Rs 4,800 crore. The company is also in talks with Brookfield Asset Management to sell its road sector business, and is also looking to monetise its power transmission business in Mumbai.

Shares of Reliance Infrastructure, which opened at Rs 480.30 per share for trading on Wednesday, fell by 4.50% to end at Rs 472.55 on BSE. Similarly, ATL’s stock fell 3.29% to Rs 58.75.