POWERGRID Acquires Bhadla-III Power Transmission Ltd for ₹6.42 Crore

Power Grid Corporation of India Limited (POWERGRID) has announced its successful acquisition of Bhadla-III Power Transmission Limited (BIIIPTL), following its selection as the successful bidder under a Tariff Based Competitive Bidding process.

The acquisition, completed on August 28, 2024, involves BIIIPTL, the Special Purpose Vehicle (SPV) responsible for establishing the Additional Transmission System for the Evacuation of Power from Bhadla-III PS as Part of the Rajasthan REZ Phase-III Scheme (20 GW). This establishment will be on a Build, Own, Operate, and Transfer (BOOT) basis. This project is critical for augmenting the transformation capacity and extending associated bays at the existing Bhadla-III substation in Rajasthan.

BIIIPTL, which was incorporated on April 19, 2024, under 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), will now be part of POWERGRID’s portfolio.

The acquisition was facilitated by REC Power Development and Consultancy Limited, the Bid Process Coordinator, and has been valued at approximately ₹6.42 crore. This amount includes 50,000 equity shares at a par value of ₹10 each, along with the assets and liabilities of the company as of the acquisition date. However, the final acquisition price may be subject to adjustments based on the audited accounts of BIIIPTL as of the acquisition date.

As part of the acquisition, POWERGRID will take over all responsibilities associated with the transmission of power through the Bhadla-III project. Requisite approvals for the grant of a transmission license and the adoption of transmission charges are to be obtained from the Central Electricity Regulatory Commission (CERC) by BIIIPTL post-acquisition.

The integration of BIIIPTL into POWERGRID’s operations aligns with the company’s strategic focus on enhancing its transmission infrastructure and supporting the efficient evacuation of power, thereby contributing to the growth of India’s power sector and ensuring stable and reliable electricity transmission.

On August 29, 2024, the share price of Power Grid Corporation of India Ltd opened at ₹332.50, touching the day’s high at ₹335.90, as of 9:34 AM on the NSE.

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