POWERGRID Takes Remaining 74% Stake in Jaypee Powergrid Limited JV

POWERGRID has signed an agreement with JPVL to acquire 74% stake in Jaypee Powergrid Limited-JV in which POWERGRID already holds 26% equity.

Power Grid Corporation of India Limited (POWERGRID), a Maharatna PSE under the Ministry of Power, Government of  India has announced that it has signed a Share Purchase Agreement with Jaiprakash Power Ventures Limited (JPVL) to acquire 74 percent stake in Jaypee Powergrid Limited-JV (JPL) in which POWERGRID already holds 26 percent equity. 

JPL will now become a wholly-owned subsidiary of POWERGRID following this acquisition.

The JPL-JV has so far developed a 214 km long EHV power transmission project to evacuate power from the Karcham-Wangtoo project in the state of Himachal Pradesh. The power transmitted is meant for distribution and consumption in states of Himachal Pradesh, Haryana, Punjab, Uttar Pradesh and Rajasthan.

The firm has also announced that it has established an e-Tendering Portal-PRANIT which will lead to less paperwork and ease of operation, making the tendering process more transparent. The portal has been certified by Standardisation, Testing and Quality Certification Directorate (STQC), Ministry of Electronics and Information Technology, Government of India. With this, Powergrid is now the only organization in India to have an eProcurement solution on SAP Supplier Relationship Management (SRM), complying with all applicable requirements relating to security and transparency as stipulated by STQC.

Earlier this month, the PSE had announced that pursuant to its selection as the successful bidder under tariff-based competitive bidding, it has on March 9, 2021, acquired Ramgarh New Transmission Limited (RNTL) from REC Power Distribution Company Limited. RNTL is the project SPV to establish the transmission system strengthening scheme for the evacuation of power from solar energy zones (SEZ) in Rajasthan (8.1 GW) under phase II – Part A.

POWERGRID through the SPV will set up the project on a build, own, operate and maintain (BOOM) basis. The transmission system comprises the establishment of a new 400/220 kV Substation, 400 kV DIC Transmission lines and associated substation extension works in the state of Rajasthan. The system is part of the Inter State Transmission System (ISTS) Project and is to be completed in 18 months.