Tata Power has completed the formal acquisition of “Paradeep Transmission Ltd” from bid process coordinator PFC Consulting Ltd (PFCCL).
Paradeep Transmission Ltd was incorporated on November 30, 2024 as a wholly-owned subsidiary of PFC Consulting Ltd to house an interstate transmission system (ISTS) scheme formally known as “Eastern Region Expansion Scheme XXXIV.” The acquisition was completed on November 6, 2024.
Tata Power won this project under the tariff-based competitive bidding (TBCB) modality by quoting a levelized annual transmission charge (tariff) of Rs.2561.83 million, getting the better of three other contenders – Power Grid Corporation of India Ltd (PGCIL), Sterlite Power and Adani Energy Solutions Ltd (AESL).
The project, taking shape in Odisha, involves, among other elements, setting up of the 765/400kV Paradeep GIS substation and a 190-km double-circuit 765kV double-circuit line from this substation to the Angul substation. There is also a 12-km 400kV double-circuit line from the upcoming Paradeep GIS substation to OPTCL’s substation at Paradeep.
The project, estimated to cost around Rs.2,564 crore (as estimated by National Committee on Transmission) is scheduled to complete by November 6, 2026, which is 24 months from the date of formal acquisition of the project SPV.
Delay in SPV transfer
Tata Power was issued the letter of intent for this scheme by PFCCL on August 3, 2024 and time lapse of over three months in transfer of SPV from PFCCL to Tata Power is quite intriguing. As per the standard bidding documents, the transfer of SPV should take place in ten days from the issuance of LoI.
Three ISTS-TBCB wins
Speaking only of greenfield ISTS-TBCB schemes, Tata Power now has three such in its portfolio:
Tata Power debuted in the greenfield ISTS-TBCB space last year by winning a project housed under “Bikaner III Neemrana II Transmission Ltd.” This SPV has been since renamed to “TP Bikaner III Neemrana II Transmission Ltd” post its formal acquisition from PFCCL, the bid process coordinator, on December 27, 2023. As discussed in this story, Tata Power has formally acquired “Paradeep Transmission Ltd.”
Very recently, Tata Power received the letter of intent from bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) for developing an ISTS-TBCB scheme “Eastern Region Expansion Scheme – XXXIX” that is housed under “ERES-XXXIX Power Transmission Ltd.” (Read full story)
(“Greenfield ISTS-TBCB” space refers to ISTS projects that Tata Power has won through actual bidding. Specifically, it does not include acquisitions of ISTS-TBCB assets from original developers.)
ISTS-TBCB in FY25
During the current fiscal year so far (April 1, 2024 to November 6, 2024), a total of 20 ISTS-TBCB schemes have been formally transferred to winning developers, according to estimates made by T&D India. While PGCIL has been most successful in winning ten of these schemes, other successful winners include AESL, Sterlite Power, IndiGrid, Tata Power, Apraava Energy, G R Infraprojects and Techo Electric & Engineering.
Featured photograph is for representation only
