FutureSenseIndia

POWERGRID Acquires Khavda V-A Power Transmission Limited (KVAPTL) for ₹18.95 Crore

POWERGRID Acquires KVAPTL for ₹18.95 Crore to Boost Renewable Energy Transmission

New Delhi, November 19, 2024 – Power Grid Corporation of India Limited (POWERGRID), the state-owned transmission giant, has acquired Khavda V-A Power Transmission Limited (KVAPTL) for approximately ₹18.95 crore. This strategic acquisition aligns with POWERGRID’s mission to bolster India’s renewable energy infrastructure and ensure seamless power evacuation from emerging renewable energy zones.

The acquisition, completed in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, grants POWERGRID full control of KVAPTL, a special purpose vehicle (SPV) formed to execute a critical transmission project in Gujarat’s Khavda region.


Acquisition Highlights

  1. Competitive Process: POWERGRID secured KVAPTL through a Tariff Based Competitive Bidding (TBCB) process.
  2. Cost and Ownership: The transaction, valued at ₹18.95 crore, includes equity shares, assets, and liabilities. The final price will be subject to adjustments based on audited financials as of the acquisition date.
  3. 100% Shareholding: POWERGRID now holds 100% control over KVAPTL.
  4. No Prior Connection: This deal is a non-related party transaction, as POWERGRID had no prior interest in KVAPTL.
  5. Incorporation: KVAPTL was incorporated on October 10, 2023, by REC Power Development and Consultancy Limited (RECPDCL). RECPDCL facilitated the acquisition by securing all necessary transfer approvals.

Project Scope and Vision

KVAPTL will execute a transformative project aimed at establishing a robust transmission system to evacuate power from renewable energy zones in Gujarat’s Khavda area.

Key Features of the Project

  • Terminal Stations:

    • 6000 MW, ±800 kV HVDC terminals at KPS2 (Gujarat) and Nagpur (Maharashtra).
  • Transmission Infrastructure:

    • ±800 kV HVDC KPS2-Nagpur Bipole line, covering approximately 1200 km across Gujarat and Maharashtra.
  • Interconnection Projects:

    • LILO of the Wardha–Raipur 765 kV D/C line at Nagpur.
    • Essential equipment and terminal station interconnections.
  • Operating Model:

    • The project will follow a build, own, operate, and transfer (BOOT) model.

Regulatory Path Ahead

Following the acquisition, KVAPTL must secure:

  1. Transmission License approval from the Central Electricity Regulatory Commission (CERC).
  2. Adoption of Transmission Charges, also from CERC.

KVAPTL’s Role in the Power Sector

KVAPTL, a new entrant in the power transmission sector, is yet to commence commercial operations. Its operational focus will remain within India, specifically addressing the growing renewable energy demands of Gujarat and Maharashtra.


POWERGRID’s Commitment to Renewable Energy

With this acquisition, POWERGRID reinforces its commitment to renewable energy integration in India. The company’s proactive investments in modern transmission systems underline its vision of creating a sustainable and reliable energy grid for the future.

This project will not only enhance renewable energy evacuation from Gujarat’s Khavda region but also support India’s broader transition to a clean energy economy.

Leave a Reply

Your email address will not be published. Required fields are marked *