Power Grid Corporation acquires RNTL for an inter-state transmission project

Power Grid Corporation has been recently declared as a successful bidder under Tariff Based Competitive Bidding (TBCB). With this acquisition it is expected to complete an inter-state transmission system project with RNTL in 18 months.

Power Grid Corporation of India Limited recently acquired Ramgarh New Transmission Limited (RNTL). RNTL is a project company established for the Transmission System Strengthening Scheme for the evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II – Part A. The acquisition came after Power Grid was declared as a successful bidder under Tariff Based Competitive Bidding (TBCB).

The project comprises the establishment of 400/220 kV new sub-stations, 400 kV D/C transmission lines and associated sub-station extension work under build, own, operate and maintain (BOOM) basis for 35 years. The transmission system is an Inter-State Transmission System project situated in the state of Rajasthan and is scheduled to be completed in 18 months.

During the Financial Year 2020-21, bidding for five of the Inter-State Transmission Projects has been undertaken to date and Power Grid has been declared as the successful bidder for all the five projects. The Acquisition of Ramgarh New Transmission Limited is the first in the series of five projects and acquisition for the remaining four project companies is underway.

In last month Power Grid Inaugurated the Thrissur HVDC Project in Kerela. The HVDC project is part of the Raigarh-Pugalur-Thrissur 6000 MW HVDC system and enables the transfer of 2000 MW to Kerala through the HVDC station at Thrissur.

Power Grid acquired RTNL for an aggregate value of about ₹5.61 crores including 50,000 equity shares at par at ₹10 /- each along with assets and liabilities of the company as of the date it was acquired.  The acquisition price is subject to adjustment as per the audited accounts as of the date of acquisition. PGCIL now owns 100% equity in the RNTL, which will be engaged in the business of transmission of power.