State-owned power transmission company Power Grid Corporation of India (PGCIL) has acquired two transmission projects – Fatehgarh Bhadla Transco Limited and Sikar New Transmission Limited under Phase II, Part-B, and C of the ‘transmission strengthening program’. Each of the projects is to evacuate 8.1 GW of power from solar energy zones in Rajasthan.
REC Limited’s wholly-owned subsidiary REC Power Distribution Company Limited (RECPDCL) handed over the two project-specific special purpose vehicles (SPVs) to PGCIL. REC had invited bids in December 2020 to establish transmission systems to evacuate power from solar energy zones in Rajasthan. The invitation was extended to transmission service providers under phase II for part-A, B, and C of the transmission infrastructure program to evacuate 8.1 GW of power from these zones. PGCIL had won all three projects. PGCIL had acquired the Ramgarh New Transmission under Phase II, Part-A of the program in March this year.
The entire shareholding of Fatehgarh Bhadla Transco and Sikar New Transmission, comprising 50,000 equity shares held by RECPDCL, has been transferred to PGCIL at par value along with all its assets and liabilities on June 4, 2021.
Fatehgarh Bhadla Transco was incorporated on June 2, 2020, for transmission system strengthening to evacuate power from solar energy zones in Rajasthan (8.1 GW) under Phase II-Part B, on a build, own, operate, and maintain basis.
The transmission system includes establishing a 765kV D/C line and associated bays extension works in Rajasthan. The transmission system is an Inter-State Transmission System (ISTS) project, slated for completion in 18 months.
Fatehgarh Bhadla Transco would obtain the approval for ‘grant of transmission license and adoption of transmission charges from the Central Electricity Regulatory Commission (CERC) after PGCIL’s acquisition. The Transco has been acquired for an aggregate value of about ₹130.4 million (~$1.78 million), including 50,000 equity shares at par at ₹10 (~$0.14)/share along with assets and liabilities of the company as of the acquisition date (June 4, 2021). However, the acquisition price is subject to adjustment as per the audited accounts of PGCIL as of the acquisition date.
Meanwhile, Sikar New Transmission was incorporated on June 11, 2020, as part of the transmission system strengthening program for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase-II – Part C, on a build, own, operate, and maintain basis.
The transmission system comprises establishing a new 765/400kV Substation at Sikar-II, 765kV D/C Transmission line, 400kV D/C Transmission line, and an associated substation extension works in Rajasthan. The transmission system is an ISTS project slated to be completed in 18 months.
Sikar New Transmission has been acquired for an aggregate value of about ₹185.4 million (~$2.54 million).
On May 21, 2021, its PGCIL’s board approved an investment to the tune of ~₹22.20 billion (~$301.48 million) for commissioning various power transmission projects.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.