Power Grid Corporation of India (PGCIL) said it acquired Meerut-Simbhavali Transmission as a special purpose vehicle to establish transmission system in Uttar Pradesh.
Power Grid Corporation of India (PGCIL) post market hours on Friday, announced acquisition of Meerut-Simbhavali Transmission (MSTL) to function as the project special purpose vehicle (SPV). MSTL is engaged in power transmission business. The acquisition was done after PGCIL emerged as successful bidder under tariff based competitive bidding for construction of 765/400/220 kV GIS substation in Meerut and 400/220/132 kV GIS substation in Simbhaoli with associated transmission lines, on build, own, operate and maintain (BOOM) basis.The transmission system is an intra state transmission system project of Uttar Pradesh and is to be progressively constructed by August 2021.
In a separate announcement on Friday, the board of PGCIL approved an investment of about Rs 180 crore with respect to schemes to control fault level at Kanpur & Bhiwani substations in Northern Region and Wardha substations in Western Region with commissioning schedule progressively in 18 and 27 months respectively, from the date of investment approval.
Shares of PGCIL fell 0.13% to Rs 186.1 on Friday. The stock was trading below its 200 day moving average (DMA) placed at Rs 196.61. It was also below its 50 DMA placed at Rs 193.98. These levels will act as resistance zone in near term.
PGCIL reported 9.5% rise in consolidated net profit to Rs 2571.10 crore on 6% increase in net sales to Rs 9051.29 crore in Q2 September 2019 over Q2 September 2018.
PGCIL, a 'Navratna' company operating under Ministry of Power, is engaged in power transmission business. The company transmits about 50% of the total power generated in India on its transmission network.
The government held 55.37% stake in the company as on 30 September 2019.
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