Shares of state-run Power Grid Corporation Ltd. surged as much as 2.78% to hit an intra-day high of ₹215, a day after the company acquired a 100% stake in ER NER Transmission Limited (ETL), a special purpose vehicle to establish inter-state transmission system in the country’s eastern and north-eastern regions.
The entity 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 as on the date of aquisition.
However, the acquisition price is subject to adjustment as per the audited accounts of the company as on the date of acquisition.
“In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Power Grid Corporation of India Limited, pursuant to its selection as the successful bidder under Tariff based competitive bidding, has on 10.10.2022 acquired ER NER Transmission Limited (ETL), the Project SPV to establish Inter-State Transmission System for System Strengthening Scheme for Eastern and North Eastern Regions, on build, own, operate and transfer (BOOT) basis from the Bid Process Coordinator - REC Power Development and Consultancy Limited,” the company says in a stock exchange filing.
“The Inter State Transmission System comprises of Upgradation works at 400/132kV Banka (Bihar) with implementation schedule of 24 months and establishment of 220kV D/C Transmission lines passing through the states of Assam & Arunachal Pradesh and bays extension works with implementation schedule of 36 months,” it adds.
ETL was incorporated on October 6 last year. “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,” according to the regulatory filing.
According to the ministry of finance, the state-run power major has implemented the transmission system for 7 solar parks of 6,500 MW across five states, comprising about 1,870 circuit kilometre (ckm) transmission lines and 5 sub-stations with 13,500 MVA transmission capacity.
Notably, the ministry of power on Tuesday informed the members of the parliamentary consultative committee that the government is mulling electricity transmission for renewable energy capacity of about 233 GW by 2030.
The country’s power consumption currently stands at 1,400 billion units, which is expected to double by 2030.
