Power Grid Corporation of India emerged as the successful bidder under tariff-based competitive bidding (TBCB) to acquire ER NER Transmission (ETL).
The company acquired ETL, the project special purpose vehicle (SPV), to establish an interstate transmission system for system strengthening scheme for eastern and northeastern regions, on a ‘build, own, operate and transfer (BOOT) basis’ from the bid process coordinator – REC Power Development and Consultancy.
The interstate transmission system comprises upgradation works at 400/132kv Banka (Bihar) with an implementation schedule of 24 months and the establishment of 220kV D/C transmission lines passing through the states of Assam and Arunachal Pradesh and bays extension works with an implementation schedule of 36 months, the company said in a BSE filing on Tuesday.
ETL was acquired for an aggregate value of about ₹7.04 crore including 50,000 equity shares at par at ₹10 each along with assets and liabilities of the company. Power Grid Corporation of India Ltd (PGCIL) now owns a 100% stake in ETL, it said.
ETL was incorporated on 6 October 2021 by a bid process coordinator. The entity is yet to start commercial operation, as such no turnover has been recorded since its incorporation. The entity will be operating in India and is engaged in the business of transmission of power.
Power Grid added that the approval for the grant of transmission license and adoption of transmission charges are to be obtained from Central Electricity Regulatory Commission by ETL after the acquisition by the company.
Power Grid Corporation of India has been established by the Government of India (GoI) as the central transmission utility of India. As of 30 June 2022, the Government of India owned a 51.34% stake in the company.
On a consolidated basis, Power Grid Corporation of India’s net profit tumbled 36.6% to ₹3,801.19 crore in Q1 FY23 as against ₹5,998.28 crore recorded in Q1 FY22.
