Techno Electric join hands with IndiGrid for transmission projects

19 Aug 2024 , 01:19 PM

Techno Electric & Engineering Company Ltd said on Friday (16 August) that it has teamed with Indigrid to jointly construct two of Indigrid’s greenfield Interstate Transmission System (ISTS) projects.

In addition, it has entered into a collaboration with IndiGrid by executing a Securities Subscription Cum Shareholders Agreement (SSSHA) to acquire a minority equity share in two of IndiGrid’s Special Purpose Vehicles.

The two SPVs are Ishanagar Power Transmission Ltd. (IPTL) and Dhule Power Transmission Ltd. This agreement represents a strategic move for Techno Electric as it develops its presence in the power transmission sector.

Techno Electric will co-develop and invest in IndiGrid’s two ISTS projects, Dhule Power Transmission Limited (DPTL), and Ishanagar Power Transmission Limited (IPTL), according to a stock exchange filing.

In addition to the equity investment, Techno Electric will be the EPC contractor for the greenfield transmission projects.

These projects include the construction of a transmission system for the “Western Region Expansion Scheme XXXII (WRES-XXXIII)” and an inter-state transmission system for power evacuation from Ishanagar and Dhule.

The collaboration enables Techno Electric to co-develop and financially contribute to the expansion of IndiGrid’s Interstate Transmission System (ISTS) initiatives.

As part of the deal, Techno Electric will invest minority capital in the SPVs and assume full responsibility for completing the projects on a Lump Sum Turnkey (LSTK) basis.

At around 11.00 AM, Techno Electric & Engineering was trading 3.99% higher at ₹1,713 per piece, against the previous close of ₹1,647.25 on NSE. The counter touched an intraday high and low of ₹1,729.60, and ₹1,678.95, respectively.

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