The Power Grid Corporation of India Limited (Power Grid) completed its acquisition of Ramgarh II Transmission Limited (RIITL) on October 16, 2023. This acquisition was secured through a competitive bidding process, known as Tariff Based Competitive Bidding (TBCB).
RIITL, now under Power Grid’s control, is a special purpose vehicle (SPV) responsible for establishing a Transmission System in Rajasthan. This system will facilitate the evacuation of power generated from the Renewable Energy Zone (REZ) in Rajasthan, with a capacity of 20 GW. This project falls under Phase-III Part C1 and operates under a Build, Own, Operate, and Transfer (BOOT) framework. The acquisition cost amounted to approximately ₹18.98 crore, which includes 50,000 equity shares valued at ₹10 each, in addition to the assets and liabilities of RIITL as of the acquisition date, which was October 26, 2023.
The project’s scope involves the creation of a new 765/400kV substation equipped with a STATCOM at Ramgarh, along with a 765kV D/C Transmission Line. Furthermore, it encompasses the extension of bays at existing substations in the state of Rajasthan. This Transmission System is categorized as an Inter-State Transmission System Project and is set to be completed within 24 months.
It’s important to note that RIITL, before the acquisition, was engaged in a business similar to that of Power Grid – the transmission of power. Following the acquisition, RIITL will need to obtain approvals for the grant of a Transmission License and the adoption of Transmission Charges from the Central Electricity Regulatory Commission.
Power Grid’s acquisition of RIITL means that it now has 100% control over the company and has acquired all of its shares. The actual acquisition price is subject to adjustment based on the audited financial accounts of RIITL as of the acquisition date.
This strategic move by Power Grid represents a significant step in expanding and strengthening India’s transmission infrastructure, particularly in facilitating the transmission of renewable energy from Rajasthan’s vast Renewable Energy Zone.
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