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.

Power Grid Corporation of India Limited (POWERGRID) has achieved a significant milestone in its expansion efforts, securing a new inter-state transmission system project through a competitive bidding process. The project, focused on enhancing renewable energy integration, is set to bolster the company's presence in Madhya Pradesh's power infrastructure.

Project Details

The newly awarded project involves two key components:

1. Augmentation of transformation capacity
2. Implementation of line bays at Mandsaur substation

This initiative is specifically designed to facilitate the interconnection of renewable energy sources, highlighting POWERGRID's commitment to supporting India's green energy transition.

Bidding Process and Award

POWERGRID emerged as the successful bidder in a tariff-based competitive bidding (TBCB) process. The project will be executed on a Build, Own, Operate, and Transfer (BOOT) basis, demonstrating the company's expertise in end-to-end power transmission infrastructure development.

Official Confirmation

In a significant development, POWERGRID received the Letter of Intent (LoI) for the project on September 19, 2025. This information was disclosed by the company in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Project Location and Scope

The project's scope is centered around augmentation works at the under-construction Mandsaur substation in Madhya Pradesh. This strategic location is expected to play a crucial role in strengthening the state's power transmission capabilities, particularly in relation to renewable energy integration.

Implications for Renewable Energy

By enhancing the transformation capacity and implementing new line bays, the project is poised to significantly improve the infrastructure for connecting renewable energy sources to the grid. This aligns with India's broader goals of increasing the share of renewable energy in its power mix.

POWERGRID's success in securing this project underscores its continued importance in India's power transmission sector and its role in facilitating the country's transition towards a more sustainable energy future.