Power Grid Corporation of India (PGCIL) on Tuesday announced that it has acquired ER NER Transmission (ETL), in accordance with its selection as the successful bidder under tariff based competitive bidding.
PGCIL on 10 October 2022 acquired ETL, the project special purpose vehicle (SPV) to establish inter-state transmission system for system strengthening scheme for eastern and north eastern regions, on build, own, operate and transfer (BOOT) basis from the bid process coordinator - REC Power Development and Consultancy.
The inter state transmission system comprises of upgradation works at 400/132kV Banka (Bihar) with implementation schedule of 24 months and establishment of 220kV D/C Transmission lines passing through the states of Assam & Arunachal Pradesh and bays extension works with implementation schedule of 36 months, the company said.
ETL was acquired for an aggregate value of about Rs 7.04 crore including 50,000 equity shares at par at Rs 10 each along with assets and liabilities of the company. PGCIL now owns 100% stake in ETL.
ETL was incorporated on 6 October 2021 by bid process coordinator. The entity is yet to start commercial operation, as such no turnover has been recorded since its incorporation. The entity will be operating in India and is engaged in the business of transmission of power.
Power Grid Corporation of India has been established by the Government of India (GoI) as the central transmission utility of India. As of 30 June 2022, the Government of India owned a 51.34% stake in the company.
On consolidated basis, Power Grid Corporation of India's net profit tumbled 36.6% to Rs 3,801.19 crore in Q1 FY23 as against Rs 5,998.28 crore recorded in Q1 FY22.
Shares of Power Grid Corporation of India were down 0.19% to Rs 208.55 on the BSE.
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