Power Grid Corporation of India Ltd (PGCIL) has proposed to form a joint venture to develop the intrastate transmission network in Rajasthan.
In a brief stock exchange communication, PGCIL said that it has executed a memorandum of understanding (MoU) with state transmission utility Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RRVPNL) on March 10, 2024 to incorporate a joint venture company for development of the intrastate transmission system in Rajasthan.
While PGCIL, with equity stake of 74 per cent, will be the majority stakeholder in the proposed joint venture, RRVPNL will hold the remaining 26 per cent.
The joint venture will undertake projects worth up to Rs.10,000 crore in a phase manner, the stock exchange filing said without giving further details.
JV in Bihar
According to information available with T&D India, PGCIL has formed a similar joint venture in Bihar. In December 2012, PGCIL formed a joint venture “Bihar Grid Company Ltd” with Bihar State Power (Holding) Company Ltd on a 50:50 equity participation basis.
As of March 31, 2022, Bihar Grid Company Ltd was implementing transmission system strengthening schemes in Bihar, worth Rs.2,024 crore, under “Phase IV, Part I”. Major components of projects envisaged under “Phase IV, Part I” were under commercial operation.
Further, works under “Phase IV, Part II” worth Rs.1,688 crore and supplementary works worth another Rs.111 crore were under implementation as of given date.
JV in Odisha
It is also learnt that PGCIL had proposed to form a similar joint venture in Odisha but the proposal did not take off.
Also read: PGCIL Records Major Success In ISTS-TBCB Projects In FY24
Featured photograph (source: PGCIL) is for representation only.
