Power Grid Corp Acquires Beawar-Mandsaur Transmission Ltd and Sirohi Transmission Ltd

On August 22, 2024, Power Grid Corporation of India Limited (POWERGRID) announced the acquisition of Beawar – Mandsaur Transmission Limited (BMTL) and Sirohi Transmission Limited (STL). Both acquisitions were achieved through successful bidding under Tariff Based Competitive Bidding (TBCB) guidelines.

Beawar – Mandsaur Transmission Limited Acquisition

POWERGRID acquired BMTL, a Special Purpose Vehicle (SPV), for the establishment of the “Transmission System for Evacuation of Power from Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/Barmer Complex): Part D”. This project involves the construction of a 765kV Double Circuit (D/C) Transmission Line and associated bay extension works at existing substations in Rajasthan and Madhya Pradesh.

The acquisition was made from PFC Consulting Limited, the Bid Process Coordinator, for an aggregate value of approximately ₹18.58 crore. This includes 10,000 equity shares at par value of ₹10 each, along with the assets and liabilities of BMTL as of the acquisition date. The acquisition price is subject to adjustments based on the audited accounts of BMTL.

BMTL was incorporated on January 19, 2024, as per the “Guidelines Encouraging Competition in Development of Transmission Projects” and “Tariff Based Competitive-bidding Guidelines for Transmission Service” issued by the Ministry of Power (MoP). Post-acquisition, BMTL will require approvals from the Central Electricity Regulatory Commission (CERC) to grant a transmission license and adopt transmission charges.

Sirohi Transmission Limited Acquisition

Similarly, POWERGRID has acquired STL, another SPV, for the “Transmission System for Evacuation of Power from Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/Barmer Complex): Part B”. This project entails establishing a new 765/400 kV sub-station near Sirohi in Rajasthan, along with 765kV and 400kV D/C Transmission Lines and bay extension works at existing substations in Rajasthan.

The acquisition was also facilitated by PFC Consulting Limited and valued at approximately ₹18.74 crore. This amount includes 10,000 equity shares at a par value of ₹10 each, along with STL’s assets and liabilities as of the acquisition date. Similar to BMTL, STL’s acquisition price will be adjusted according to audited accounts.

STL was also incorporated on January 19, 2024, following the MoP’s transmission project guidelines. After acquisition, STL will need to secure approvals from CERC for the transmission license and charges.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.