Power Grid Corp Acquires Rajasthan IV E Power Transmission Ltd for Rs 18.54 Crore

Power Grid Corporation of India announced the acquisition of Rajasthan IV E Power Transmission Ltd, a project special purpose vehicle, for Rs 18.54 crore. The transaction includes assets, liabilities, and 50,000 equity shares. The project involves establishing a 765 kV sub-station in Rajasthan and associated transmission lines.

The State-owned Power Grid Corporation of India announced on Monday that it has acquired the project special purpose vehicle (SPV) Rajasthan IV E Power Transmission Ltd. This strategic move involves setting up a new 765 kV sub-station at Rishabhdeo in Rajasthan, along with 765 kV D/C transmission lines and related bays extension works at other existing substations in Rajasthan and Madhya Pradesh, according to a BSE filing.

This acquisition follows Power Grid Corporation's successful bid under tariff-based competitive bidding. On August 19, 2024, the corporation took ownership of Rajasthan IV E Power Transmission Ltd, the Project SPV responsible for the 'transmission system for the 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. The deal was secured from Bid Process Coordinator – REC Power Development and Consultancy Ltd, at an aggregate valuation of approximately Rs 18.54 crore, which includes 50,000 equity shares valued at Rs 10 each and the company's assets and liabilities as of the acquisition date.

However, the acquisition price is subject to adjustment based on the audited accounts as of the acquisition date. The newly acquired entity will focus on the business of power transmission. Incorporated in 2023 by the Bid Process Coordinator, the entity has yet to start commercial operations, reflecting no recorded turnover in the last three years.

(With inputs from agencies.)