Power Grid Corporation of India acquired 100% stake in Fatehgarh II Transmission Limited for ₹19.11 crore on August 28, 2026. The transaction followed the company’s selection as the successful bidder under the Tariff Based Competitive Bidding (TBCB) route.

Acquisition details

The following table summarises the key details of the transaction as disclosed:

Power Grid Corporation of India is a central transmission utility responsible for planning, implementation, and operation of the inter-state transmission system across the country. The acquisition of Fatehgarh II Transmission Limited adds to its portfolio of transmission assets.

Project specifics

Fatehgarh II Transmission Limited is a project special purpose vehicle incorporated on May 6, 2026, by the Bid Process Coordinator, PFC Consulting Limited. The entity has been engaged in establishing an Inter-State Transmission system for the installation of two Synchronous Condensers (SynCon) units at 765/400/220kV Fatehgarh-II PS on a build, own, operate and transfer (BOOT) basis.

The project involves the installation and commissioning of two SynCon units at Fatehgarh-II PS along with associated bays. As the entity was yet to start commercial operations at the time of acquisition, no turnover was recorded in the preceding three years.

Regulatory and financial context

The acquisition price of ₹19.11 crore includes 10,000 equity shares at par value of ₹10 each, along with the assets and liabilities of the target entity as on the acquisition date. The final price is subject to adjustment based on audited accounts.

Power Grid confirmed that the transaction does not fall within related party transactions, as it had no prior interest in the entity. Approvals for the Grant of Transmission License and Adoption of Transmission Charges are to be obtained from the Central Electricity Regulatory Commission by the acquired entity post-acquisition.

Power Grid Corporation of India has been fined ₹11,36,340 each by the Bombay Stock Exchange and the National Stock Exchange for failing to meet statutory board composition requirements during the quarter ended June 30, 2026.

The penalties, totaling ₹22,72,680 including GST, stem from non-compliance with multiple provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company disclosed the fines in a filing dated August 26, 2026.

Regulatory Violations

The exchanges imposed the fines due to deficiencies in the composition of the Board and its statutory committees. Specifically, Power Grid did not maintain the requisite number of Independent Directors during the quarter ended June 30, 2026.

This shortfall led to violations of Regulations 17(1), 17(2A), 18(1), 19(1)/19(2), 20(2)/20(2A), and 21(2) of the SEBI LODR. These regulations govern the quorum for Board meetings and the makeup of key committees, including:

• Audit Committee
• Nomination and Remuneration Committee
• Stakeholders Relationship Committee
• Risk Management Committee

Government Appointment Process

Power Grid attributed the non-compliance to the procedural requirements for appointing directors in government-owned entities. As a Government Company under Section 2(45) of the Companies Act, 2013, the power to appoint Independent Directors vests with the President of India.

The company stated that the lapse was not operational but structural, arising from vacant posts. It has engaged with the Ministry of Power to fill the positions, including that of an Independent Woman Director.

Waiver Request

In its disclosure, Power Grid noted that it has requested both BSE and NSE to waive the imposed fines. The company submitted letters on August 26, 2026, citing the nature of the violation as outside its direct control due to the central government appointment process.

What the Numbers Show

The financial impact of the regulatory action is limited to the penalty amount. With no other financial metrics disclosed in this specific compliance filing, the primary signal is the administrative cost incurred. The total outflow of ₹22,72,680 represents a direct expense item for the quarter, distinct from operational revenues or margins.