Power Grid Corp Acquires Rajasthan Transmission Project for ₹18.54 Crore

20 Aug 2024 , 12:16 PM

On August 19, Power Grid Corporation of India Ltd (POWERGRID) acquired Rajasthan IV E Power Transmission Ltd (RIVEPTL) for ₹18.54 crore after being selected as the successful bidder under Tariff-Based Competitive Bidding.

The acquisition enables POWERGRID to develop and manage the “Transmission System for Evacuation of Power from Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/Barmer Complex): Part E” on a Build, Own, Operate, and Transfer (BOOT) basis.

RIVEPTL is a Special Purpose Vehicle (SPV) created by REC Power Development and Consultancy Limited on October 14, 2023, specifically for this project.

The project involves establishing a new 765 kV substation at Rishabhdeo in Rajasthan, along with the construction of 765 kV D/C transmission lines and related bay extensions at existing substations in Rajasthan and Madhya Pradesh.

This acquisition aligns with POWERGRID’s core focus on power transmission and reinforces its commitment to enhancing the national grid, especially for renewable energy zones (REZ).

At the time of writing, shares of Power Grid Corporation of India Ltd is trading at ₹340 which is a 0.029% gain than the previous close. Power Grid Corporation of India Ltd stock has gained a total of 83% in the last one year, and almost 42% since the beginning of the year.

Post-acquisition, RIVEPTL will seek regulatory approvals from the Central Electricity Regulatory Commission (CERC) for a transmission license and the adoption of transmission charges.

The acquisition includes 50,000 equity shares valued at ₹10 each, along with RIVEPTL’s assets and liabilities as of the acquisition date, with the final acquisition price subject to adjustments based on audited accounts.