Power Grid Corporation acquires Khavda II-C Transmission Ltd

Power Grid Corporation Limited has informed that the company has acquired Khavda II-C Transmission Limited (KCTL), the Project SPV to establish a transmission scheme for evacuation of 4.5GW RE injection at Khavda PS under Phase II- Part C.

The acquisition follows a Build, Own, Operate, and Transfer (BOOT) model and was made by the Bid Process Coordinator – REC Power Development and Consultancy Limited.

Power Grid has been announced as the successful bidder under Tariff based competitive bidding.

The transmission system includes the construction of a new 765/400kV substation in Gujarat, as well as 765kV D/C transmission lines that run through the state of Gujarat and bay extension work. The transmission system is an Inter State Transmission System Project that will take 24 months to complete.

The company said in its filing with the exchanges, “company was purchased for a net payment of roughly Rs 18.45 crore, and as part of the acquisition, 50,000 equity shares were obtained at a value of Rs 10 per share on the acquisition date, which is March 21, 2023. However, the actual acquisition price may be subject to adjustments based on the audited accounts of the company as of the acquisition date.”

The acquired entity shall be engaged in the business of transmission of power.

Following this development, Power Grid was trading at Rs223.70, down by 0.30% against the previous close of Rs224.10 on NSE. The counter touched an intraday high and low of Rs224.50 and Rs221.25 respectively.

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