Power Grid Corporation of India Limited (POWERGRID) has announced the acquisition of Kudankulam ISTS Transmission Limited (KISTSTL) on January 10, 2025, following its selection as the successful bidder under the Tariff-Based Competitive Bidding (TBCB) process. This acquisition pertains to the establishment of the Transmission System under ISTS for evacuation of power from Kudankulam Unit - 3 and 4 (2x1000 MW).

Project Details

• Transmission Line: The project involves constructing a 400kV transmission line connecting KNPP Unit-3 and 4 to Tuticorin-II in the state of Tamil Nadu.
• Terminal Equipment: The project will include the installation of terminal equipment at the Tuticorin-II substation.

Acquisition Information

• Acquisition Process: POWERGRID has successfully acquired KISTSTL, which was incorporated on June 28, 2024 by the Bid Process Coordinator. The acquisition will enable the construction and operation of a critical power transmission infrastructure project.

• Industry: The acquisition falls under the Power Transmission industry, aligning with POWERGRID's core business activities.

Regulatory Approvals

The acquisition follows the necessary regulatory guidelines set out by the Ministry of Power (MoP) and the Central Electricity Regulatory Commission (CERC). The required approvals for the transfer of KISTSTL, as well as for the transmission license and adoption of transmission charges, are expected to be obtained post-acquisition.

Financials & Cost of Acquisition

• Acquisition Cost: The total cost for the acquisition amounts to Rs. 7.44 Crore, which includes the purchase of 10,000 equity shares at Rs. 10 each, along with the assets and liabilities of KISTSTL. The cost is subject to adjustments based on the audited accounts of KISTSTL at the time of acquisition.

• Consideration: The transaction has been completed with cash consideration.

Ownership and Control

POWERGRID has acquired 100% ownership of KISTSTL, with complete control over the transmission system project. KISTSTL, currently in its pre-commercial phase, will be engaged in the transmission of power upon the completion of its infrastructure.

Strategic Implications

This acquisition is in line with POWERGRID's ongoing efforts to enhance its power transmission capabilities and to support India's growing energy demands. The Kudankulam transmission project will play a crucial role in evacuating the power generated from Kudankulam Nuclear Power Plant Unit-3 and 4 to the national grid, further strengthening the country's power infrastructure.

Conclusion

The acquisition of Kudankulam ISTS Transmission Limited (KISTSTL) by POWERGRID marks a key step in the company’s efforts to expand its transmission capabilities in India. This acquisition is expected to significantly contribute to the effective evacuation of power from the Kudankulam plant and support the nation’s energy infrastructure development.

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