The board of directors of Power Grid Corporation of India Ltd (PGCIL) has recently approved transfer of additional equity in one subsidiary to Power Grid Infrastructure Investment Trust (PG InvIT).
In a stock exchange notification, PGCIL said that its board that met on February 23, 2022, approved the transfer of 26 per cent residual equity shareholding in Powergrid Vizag Transmission Ltd to PGInvIT.
The board in the same meeting also approved relinquishment of PGCIL’s right on additional revenue accruing to Powergrid Parli Transmission Ltd, Powergrid Warora Transmission Ltd and Powergrid Jabalpur Transmission Ltd, under change in law, to PGInvIT against upfront consideration.
It may be recalled that in May 2021, PGCIL monetized Rs.2,736.02 crore by way of sale of five of its special purpose vehicles to Powergrid Infrastructure Investment Trust (PGInvIT).
The following five SPVs were sold to PGInvIT. These five assets are collectively referred to as “Initial SPVs”:
- Powergrid Warora Transmission Ltd
- Powergrid Parli Transmission Ltd
- Powergrid Jabalpur Transmission Ltd
- Powergrid Kala Amb Transmission Ltd
- Powergrid Vizag Transmission Ltd
PGCIL had transferred 74 per cent of its holding in each of these five Initial SPVs to PGInvIT. In the latest development, PGCIL has approved the transfer of the residual 26 per cent equity in Powergrid Vizag Transmission Ltd to PGInvIT.
Click here for a detailed account of the initial transaction between PGCIL and PGInvIT
Featured photograph for representation only
