Power Grid Corporation of India Ltd (PGCIL) has entered into a shareholder agreement with state transmission utility Rajasthan Rajya Vidyut Prasaran Ltd (RVPNL) for the formation of a joint venture company.
In a stock exchange filing, PGCIL said that the shareholder agreement is a precursor to the formation of a joint venture company in which PGCIL will be a majority shareholder with 74 per cent equity, with RVPNL holding the remaining 26 per cent.
The proposed JV shall undertake projects worth up to Rs.10,000 crore, in a phase manner, towards development of the intrastate transmission system (InSTS) in Rajasthan.
As per the shareholder agreement, signed between the two parties on September 30, 2024, the proposed JV will have 10 directors – seven from PGCIL and the remaining three from RVPNL.
It may be recalled that PGCIL’s board of directors, in a meeting on June 21, 2024, had approved the formation of a JV between PGCIL and RVPNL, addressing the same objective as discussed above.
Prior to that, on May 30, 2024, PGCIL had reached an agreement with RVPNL to form a joint venture for which the shareholder agreement has now been signed.
According to information available with T&D India, PGCIL currently has a 50:50 joint venture “Bihar Grid Company Ltd” with Bihar State Power (Holding) Company Ltd being the other shareholder. This JV was formed in 2013 and has the mandate of developing an integrated and efficient intrastate power transmission system in the eastern state.
PGCIL, it is learnt is exploring similar JVs with other states like Andhra Pradesh, Uttar Pradesh and Assam.
Also read: PGCIL set to dominate Rajasthan REZ Phase-IV transmission scheme
Featured photograph is for representation only
