POWERGRID Successfully Acquires Bhadla III Transmission Limited Under TBCB Route

Power Grid Corporation of India Limited has achieved a significant milestone following its selection as the successful bidder through Tariff-based competitive bidding, has successfully acquired “Bhadla III Transmission Limited,” the special purpose vehicle (SPV) responsible for establishing the “Transmission system for evacuation of power from REZ in Rajasthan (20GW) under Phase-III Part B1.” This acquisition has been executed under the Build, Own, Operate, and Transfer (BOOT) basis, facilitated by the Bid Process Coordinator, PFC Consulting Limited.

The project encompasses the establishment of a cutting-edge 765/400/220 kV Pooling Station at Bhadla-3, a 765 kV D/C Transmission Line spanning across the state of Rajasthan, and associated bay extension works. Notably, this transmission system is classified as an Interstate Transmission System Project and is expected to be completed within 18 months from the effective date of the contract.

Bhadla III Transmission Limited, now under the ownership of POWERGRID, was acquired through a successful bid in the tariff-based Competitive Bidding process. The core business of Bhadla III Transmission Limited aligns with POWERGRID’s focus, which is the transmission of power. Bhadla III Transmission Limited was incorporated on May 27, 2022, by the Bid Process Coordinator by the “Guidelines Encouraging Competition in Development of Transmission Projects” and the “Tariff-based Competitive-bidding Guidelines for Transmission Service” as notified by the Ministry of Power (MoP).

The Bid Process Coordinator obtained all necessary approvals for the transfer of Bhadla III Transmission Limited to POWERGRID. Furthermore, Bhadla III Transmission Limited will seek approval for the Grant of Transmission License and Adoption of Transmission charges from the Central Electricity Regulatory Commission after its acquisition by POWERGRID.

The acquisition of Bhadla III Transmission Limited was completed for an aggregate value of approximately ₹20.11 Crores, inclusive of 10,000 equity shares at a par value of ₹10 each, in addition to the assets and liabilities of the Company as of the acquisition date (September 27^th, 2023). It is important to note that the acquisition price is subject to adjustment based on the audited accounts of the Company as of the acquisition date.