Power Grid Corporation of India Ltd (PGCIL) has newly incorporated a joint venture for development of Rajasthan’s intrastate power grid.
In a stock exchange filing, PGCIL said that the two-way joint venture named “Rajasthan Power Grid Transmission Company Ltd (RPTCL)” has been incorporated with PGCIL holding 74 per cent equity stake. State transmission utility Rajasthan Vidyut Prasaran Nigam Ltd (RVPN) will hold the remainder 26 per cent equity.
While RPTCL was incorporated on November 27, 2024, the Certificate of Incorporation (issued by the Union Ministry of Corporate Affairs) was received on December 31, 2024.
Earlier, on September 12, 2024, the Department of Investment & Public Asset Management (DIPAM), under the Union finance ministry, had approved the formation of RPTCL as a JV between PGCIL and RVPN.
The objective of the JV is development of the intrastate power grid in Rajasthan, PGCIL said.
Background
As already reported by T&D India on October 1 ,2024, PGCIL and RVPN had entered into a shareholder agreement for the formation of a joint venture company on 74:26 equity sharing basis, on September 30, 2024.
It was then agreed that the proposed JV will undertake projects up to Rs.10,000 crore, in a phased manner, towards development of the intrastate transmission system (InSTS) in Rajasthan. Prior to the shareholder agreement, the two partners, on May 30, 2024, the two partners had reached an agreement for the formation of a JV, now incorporated.
Engagement with states
PGCIL currently has a 50:50 JV for intrastate grid development in Bihar. Called “Bihar Grid Company Ltd” and incorporated in 2013, Bihar State Power (Holding) Company Ltd is PGCIL’s JV partner.
PGCIL is in talks with other state governments like Uttar Pradesh, Assam and Andhra Pradesh for the formation of similar joint ventures.
As far as development of intrastate networks is concerned, PGCIL is involved as a JV partner – as seen in Bihar and now in Rajasthan – and also as a developer under the tariff-based competitive bidding (TBCB) route. PGCIL is currently most active in Uttar Pradesh where it has a portfolio of four InSTS-TBCB schemes, including two commissioned, and one in Madhya Pradesh.
Also read: PGCIL clinches two more ISTS-TBCB schemes — Gadag-Koppal and Kudankulam
Featured photograph (source: Linxon) showing a grid substation in Rajasthan is for representation only
