Mukesh Ambani-controlled Reliance Industries Ltd (RIL) is set to make its debut in the power transmission development space.
Reliance Industries Ltd has been issued the letter of intent for an interstate transmission system (ISTS) scheme under the tariff-based competitive bidding (TBCB) mode.
The scheme in question is housed under “Lakadia B Power Transmission Ltd” and is termed as “Transmission system for augmentation of transformation capacity at 765/400kV Lakadia substation [WRSS XXI(A) Transco Ltd] in Gujarat, Part B.”
The letter of intent was issued to RIL by bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL).
As reported by T&D India on December 23, 2024, RIL was among the three entities qualified for opening of initial price bids, the others being Power Grid Corporation of India Ltd (PGCIL) and Adani Energy Solutions Ltd (AESL).
The Lakadia-B scheme is a multi-faceted transmission scheme, estimated to cost Rs.636 crore and with a variable implementation period. The scheme seeks to augment existing/upcoming evacuation infrastructure to support connectivity applications worth 3,500 MW received at the Lakadia pooling station (PS) in Gujarat.
Second time lucky
Prior to this, Reliance Industries Ltd had prequalified for an ISTS-TBCB scheme “Jamnagar Transmission Ltd.” This was the first time that RIL was seen bidding in the power transmission development space. However, Jamnagar Transmission was eventually won by AESL.
Lakadia B seems to have proven “second-time lucky” for the Mukesh Ambani entity.
As per the standard practice, Reliance Industries Ltd (RIL) is expected to issue a letter of acceptance to the bid process coordinator RECPDCL. Following this, the project SPV “Lakadia B Power Transmission Ltd,” currently a wholly-owned subsidiary of RECPDCL, will be formally transferred to Reliance Industries Ltd.
Meanwhile, in its board meeting held on January 16, 2025, RIL approved the acquisition of 100 per cent equity stake of RECPDCL in “Lakadia B Power Transmission Ltd” for an aggregate consideration not exceeding Rs.8 crore, thereby making the project SPV a wholly-owned subsidiary of Reliance Industries Ltd.
Also read: Reliance Industries among three bidders qualified for Lakadia-B ISTS scheme
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