In a strategic move to address its significant financial burden, state-run Energy Efficiency Services Ltd (EESL) and the National Investment and Infrastructure Fund (NIIF) have initiated the sale of their joint venture, IntelliSmart. The transaction, valued at an estimated enterprise value of $723 million, is being advised by the global consultancy firm Deloitte and is targeted for completion by February-March of this fiscal year.
A Strategic Exit to Alleviate Mounting Debt
The primary driver behind this major divestment is the pressing need for EESL to manage its substantial debt, which stands at approximately ₹6,049 crore. EESL's Chief Executive Officer, Akhilesh Kumar Dixit, confirmed the decision in an interview, stating that the proceeds from the sale would facilitate easier loan repayments. "The target is to sell IntelliSmart around February-March. So next year, loan repayment will be very easily done through these proceeds," Dixit explained, adding that this would put the company on a "very comfortable path."
EESL holds a 49% equity stake in IntelliSmart, with the sovereign wealth fund NIIF owning the remaining 51%. Both entities are jointly selling their holdings. The proposed deal, with an estimated equity value of $500 million, is poised to be one of the largest transactions within India's rapidly expanding smart metering industry.
IntelliSmart: A Key Player in a $30 Billion National Mission
The sale highlights a paradox where a financially stressed parent company is offloading an asset that is central to a critical national infrastructure project. IntelliSmart, established in 2019, is a pivotal entity in India's ambitious $30-billion programme to replace 250 million conventional electricity meters with smart ones.
The company has been awarded orders for 22 million smart meters and has already installed 5 million units across several states, including Uttar Pradesh, Assam, Gujarat, Bihar, Rajasthan, Haryana, and Delhi. Smart meters are digital devices that enable real-time monitoring of energy consumption, helping to reduce power theft, ensure reliable supply, and improve the financial health of distribution companies (discoms).
Broader Restructuring and Future Focus
The IntelliSmart sale is part of a broader consolidation strategy by EESL. The CEO announced plans to exit three other non-performing joint ventures: NEESL (with Neev International APS), Energy Efficiency Services Co Ltd Thailand, and Energy Efficiency Services LLC (UAE). Dixit clarified that these exits would have no financial impact as they involve no active investment, manpower, or operations.
EESL intends to retain and focus on its other ventures, namely Convergence Energy Services Ltd (CESL)—which runs India's large-scale electric bus tenders—and Edina Power Services in the UK. Dixit highlighted CESL's profitability and Edina's expertise in battery energy storage systems (BESS) and trigeneration, which could be leveraged for future Indian projects.
The financial stress at EESL is further underscored by its recent performance. In FY24, the company's total income fell by 11% to ₹1,176.79 crore, while its net loss narrowed to ₹459.02 crore from ₹574.26 crore in FY23. The company attributes the revenue decline to delays in collecting dues from states, which currently amount to ₹3,900 crore.
As Deloitte reaches out to potential investors, the sale of IntelliSmart marks a significant moment for India's energy sector, attracting attention from major domestic conglomerates and global funds keen on the smart metering opportunity.
