Power Grid Corp acquires Ramgarh New Transmission for Rs 5.61 cr

State-run Power Grid Corporation of India (PGCIL) on Tuesday said it has acquired Ramgarh New Transmission (RNTL), which it has won in a tariff-based competitive bidding.

PGCIL, pursuant to its selection as the successful bidder under tariff-based competitive bidding, has on 9 March 2021 acquired RNTL, the project SPV (special purpose vehicle) to establish transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II - Part A, on build, own, operate and maintain (BOOM) basis from the bid process coordinator - REC Power Distribution Company.

The transmission system comprises establishment of a new 400/220kV Substation, 400kV DIC Transmission lines and associated Substation extension works in Rajasthan. The transmission system is an inter state transmission system project and is to be completed in 18 months.

RNTL was acquired for an aggregate value of about Rs 5.61 crore including 50,000 equity shares at par at Rs 10 each along with assets and liabilities of the company as on the acquisition date (9 March 2021 ), it added. The acquisition price is subject to adjustment as per the audited accounts as on the date of acquisition.

PGCIL now owns 100% equity in the RNTL, which will be engaged in the business of transmission of power.

On a consolidated basis, PGCIL reported a 26% jump in net profit to Rs 3,367.71 crore in Q3 FY21 on an 8.3% rise in net sales to Rs 10,142.48 crore in Q3 FY21 over Q3 FY20.

Shares of PGCIL rose 0.97% to Rs 218.05 on BSE. It has been established by the Government of India (GoI) as the central transmission utility of India. As of 31 December 2020, the Government of India holds 51.34% in PGCIL.

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