Power Grid Corporation of India Limited (POWERGRID), a leading electric power transmission company, has announced significant investments in critical infrastructure projects. The company's Committee of Directors on Investment on Projects has given the green light to two major initiatives totaling ₹705.51 crore, aimed at enhancing grid operations and disaster preparedness.

VOIP Communication System for Pan-India Grid Operations

The first project, valued at ₹209.68 crore, focuses on implementing a VOIP (Voice over Internet Protocol) communication system for grid operations across all five regions of India - Northern (NR), North Eastern (NER), Southern (SR), Western (WR), and Eastern (ER). This pan-India initiative is designed to improve communication and coordination in grid operations, potentially leading to more efficient management of the national power grid.

Key details of the VOIP project include:

Emergency Restoration System for Disaster Preparedness

The second approved project, with a budget of ₹495.83 crore, is focused on enhancing POWERGRID's disaster preparedness capabilities. This initiative involves the procurement of 20 sets (300 towers) of Emergency Restoration System (ERS) under the Make in India initiative.

Highlights of the Emergency Restoration System project:

These investments demonstrate POWERGRID's commitment to modernizing its infrastructure and improving its ability to respond to potential disruptions in the power transmission network. The Emergency Restoration System, in particular, will play a crucial role in quickly restoring power transmission in the event of disasters or emergencies that may damage existing infrastructure.

POWERGRID's strategic investments in these projects align with India's broader goals of enhancing energy security, improving grid reliability, and promoting domestic manufacturing in the power sector. As these projects progress, they are expected to contribute significantly to the robustness and resilience of India's power transmission infrastructure.

The approval of these projects by POWERGRID's Committee of Directors on Investment on Projects underscores the company's proactive approach to addressing the evolving needs of India's power sector and its commitment to maintaining a reliable and efficient national grid.

Power Grid Corporation of India Limited (POWERGRID) has made a strategic move to strengthen its renewable energy transmission capabilities in Karnataka. The state-owned power transmission company has acquired Davanagere Power Transmission Limited (DPTL) for approximately Rs 6.53 crore, marking a significant step in its expansion plans.

Acquisition Details

POWERGRID successfully acquired DPTL through a tariff-based competitive bidding process. The acquisition includes 100% shareholding of DPTL, comprising 50,000 equity shares at Rs 10 each, along with the company's assets and liabilities.

Project Scope

DPTL, a special purpose vehicle (SPV), was established to develop the "Transmission System Strengthening at Davanagere for Integration of RE Generation" project in Karnataka. The project involves:

• Augmentation works at an under-construction sub-station in Davanagere, Karnataka
• Operating on a build, own, operate, and transfer (BOOT) basis

This acquisition aligns with POWERGRID's core business of power transmission and is expected to enhance the company's capacity to integrate renewable energy sources into the grid.

Regulatory Aspects

The acquisition process adhered to regulatory guidelines, including:

• Incorporation of DPTL by REC Power Development and Consultancy Limited (RECPDCL), the Bid Process Coordinator
• Compliance with the "Guidelines Encouraging Competition in Development of Transmission Projects" and "Tariff based Competitive-bidding Guidelines for Transmission Service" notified by the Ministry of Power

POWERGRID will now seek approvals from the Central Electricity Regulatory Commission for:

1. Grant of Transmission License
2. Adoption of Transmission Charges

Financial Considerations

The acquisition price of Rs 6.53 crore is subject to adjustment based on DPTL's audited accounts as of the acquisition date. It's worth noting that DPTL has not yet commenced commercial operations, and therefore, has not recorded any turnover in the past three years.

Strategic Implications

This acquisition represents POWERGRID's commitment to expanding its transmission infrastructure, particularly in the renewable energy sector. By integrating DPTL into its operations, POWERGRID aims to strengthen its position in Karnataka's power transmission landscape and support the growing renewable energy market in the region.

As India continues to push for greater adoption of renewable energy sources, POWERGRID's strategic acquisitions like DPTL are expected to play a crucial role in developing the necessary infrastructure to support this transition.