Under tariff-based competitive bidding (TBCB), Power Grid Corporation of India was chosen as the winning bidder to purchase ER NER Transmission (ETL).
The company purchased ETL, the project special purpose vehicle (SPV), from the bid process coordinator REC Power Development and Consultancy on a “build, own, operate and transfer (BOOT) basis” in order to establish an interstate transmission system for the system strengthening scheme for the eastern and northeastern regions.
The establishment of 220kV D/C transmission lines traversing the states of Assam and Arunachal Pradesh as well as bays extension works with an implementation schedule of 36 months are included in the interstate transmission system, according to the company in a BSE filing on Tuesday. The 400/132kv Banka (Bihar) upgrade project has a 24 month implementation schedule.
A total of roughly Rs 7.04 crore was paid for ETL, which included 50,000 equity shares valued at par at Rs 10 per share as well as the company’s assets and liabilities. According to the statement, Power Grid Corporation of India Ltd (PGCIL) now owns a 100% share in ETL.
On October 6, 2021, a coordinator of the bid process incorporated ETL. Since the firm has not yet begun conducting business, no turnover has been noted since incorporation. The company will be active in India and is involved in the power transmission industry.
After ETL has been acquired by the company, Power Grid stated that approval for the issue of a transmission licence and the adoption of transmission costs must be obtained from the Central Electricity Regulatory Commission.
The central transmission utility of India has been established by the Government of India (GoI), and its name is Power Grid Corporation of India. The Government of India owns 51.34% of the business as of June 30, 2022.
Power Grid Corporation of India’s net profit, measured on a consolidated basis, decreased 36.6% to Rs 3,801.19 crore in Q1 FY23 from Rs 5,998.28 crore in Q1 FY22.
On the BSE, shares of Power Grid Corporation of India fell 0.19% to 208.55.
