Adani Transmission Ltd. (ATL), the transmission business arm of the Adani Group, has received two Letters of Intent (LoI) from REC Transmission Projects Company Limited (RECTPCL) to develop two transmission projects in the state of Gujarat.
The projects will be established on a build, own, operate, and maintain basis for 35 years.
As per the company statement, the projects are being developed, to establish transmission system connected to the long-term applications from Gujarat’s wind and solar energy zones in Raghanesda and Jamnagar.
The first project, ‘Lakadia Banaskantha Transco Limited,’ will be spread across approximately 360 circuit kilometers of 765 kV D/C line along with 765 kV bays at Lakadia and Banaskantha substations. The transmission line to be constructed in this project will be used for the evacuation of power generated by renewable developers to the Lakadia pooling station.
The second project, ‘Jam Khambaliya Transco Limited, ’ consists of nearly 40 circuit kilometers of 400 kV D/C line along with a 400 kV substation at Jam Khambaliya in Gujarat. The transmission line will be used to evacuate the power generated by renewable energy generators at Jam Khambaliya to the pooling station at Lakadia.
Speaking about the upcoming transmission projects, Anil Sardana, MD, and CEO of Adani Transmission Ltd. said, “Both the projects present substantial shareholder value creation as they are significantly valued accretive within a relatively short gestation period. It is also a great opportunity to continue our commitment to transmitting bulk green power within the country and catering to India’s climate goals.”
The projects have been awarded to ATL through a tariff-based competitive bidding process.
Earlier this month, ATL signed a share purchase agreement and completed the acquisition of the WRSS XXI Transco Limited (WRSSTL) from REC Transmission Projects Company. ATL had won this project through a tariff-based competitive bidding process and received the Letter of Intent (LoI) in July 2019.
In September 2019, ATL signed a share purchase agreement and completed the acquisition of the special purpose vehicle of Bikaner-Khetri Transmission Limited (BKTL), incorporated by PFC Consulting Ltd. ATL had won this project through a tariff-based competitive bidding process and received the Letter of Intent (Lol) for the project in July 2019 too.
According to the company, ATL is the country’s largest private transmission company with a cumulative transmission network of more than 14,340 ckt km, out of which more than 11,470 ckt km is operational. This includes around 2,860 ckt km in various stages of construction.
Lack of transmission infrastructure has been a growing concern for solar and wind companies in the country. In the past, Mercom has written about how, with the expected surge in electricity demand over the coming decade and the rapid installation of solar and wind, India’s transmission and distribution system requires significant expansion.
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU).