Powergrid Corporation acquires Neemuch Transmission Limited (NTL) in Rs 17.23 crore under TBCB route

Power Grid Corporation of India Limited, pursuant to its selection as the successful bidder under Tariff based competitive bidding, has on 24.08.2022 acquired Neemuch Transmission Limited (NTL), the Project SPV to establish “Transmission System for Evacuation of Power from Neemuch SEZ”, on build, own, operate and transfer (BOOT) basis from the Bid Process Coordinator -REC Power Development and Consultancy Limited.

Electricity Transmission Lines

The Transmission system comprises establishment of two 400kV D/C Transmission lines passing through the states of Rajasthan and Madhya Pradesh, a New 400/220kV Pooling Substation at Neemuch (Madhya Pradesh) and 400kV bay extension works. The transmission system is an Inter State Transmission System Project and is to be completed in 18 months.

NTL was incorporated on 12/04/2022 by the Bid Process Coordinator as per the “Guidelines Encouraging Competition in Development of Transmission Projects” and “Tariff based Competitive-bidding Guidelines for Transmission Service” notified by Ministry of Power (MoP).

Approval for Grant of Transmission License and Adoption of Transmission charges are to be obtained from Central Electricity Regulatory Commission by NTL after the acquisition by POWERGRID.

The entity was acquired for aggregate value of about Rs. 17.23 Cr. including 50,000 equity shares at par at Rs. 10 each along with assets and liabilities of the Company as on the acquisition Date (24.08.2022). However, the acquisition price is subject to adjustment as per the audited accounts of the Company as on the acquisition Date.