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India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT), has completed the acquisition of three power transmission assets worth Rs 1,410 crore from its sponsor, Sterlite Power Grid Ventures Ltd (SPGV). Simultaneously, the trust has also agreed to invest Rs 230 crore in a third-party asset owned by Techno Electric.
In October 2017, BusinessLine had reported that IndiGrid would buy three firms from Sterlite Power for Rs 1,490 crore. READ THE STORY
The total acquisition amount, including that in Patran Transmission Company Ltd (PTCL), the third-party asset owned by Techno Electric, stands at about Rs 1,640 crore. The trust has completed the acquisition of RAPP Transmission Company Ltd, Purulia, Kharagpur Transmission Company Ltd and Maheshwaram Transmission Ltd from SPGV. It has also signed definitive agreements with Techno Electric & Engineering Ltd to invest in Patran Transmission Company Ltd (PTCL).
“In line with its vision of reaching assets under management (AUM) of Rs 30,000 crore, IndiGrid has completed the first set of acquisitions. Further, we have demonstrated our ability to pursue third-party assets by signing definitive agreements with Techno Electric,” said Pratik Agarwal, Chief Executive Officer, at IndiGrid.
“The fundamentals of the power transmission sector in India remain robust and IndiGrid will continue to acquire assets from both the sponsor and third-parties to further increase portfolio IRR,” he added. Power transmission assets acquired from SPGV consist of five transmission lines aggregating 1,425 circuit km and were awarded on a Build, Own, Operate and Maintain model through competitive bidding.
The residual contractual life is about 34 years and these inter-state assets operate under the Point of Connection mechanism. These assets are spread across Rajasthan, Madhya Pradesh, West Bengal, Jharkhand and Telangana. PTCL comprises a 400/220 kV, 1000 MVA substation in Patran, Punjab, with 14 bays and Loop-In-Loop-Out lines connecting the 400 kV Kaithal–Patiala line. This inter-state transmission project was awarded to Techno Electric & Engineering Company under the Build, Own, Operate and Maintain model through the tariff-based competitive bidding mechanism.
It has a long residual contractual life of about 33 years and operates under the Point of Connection mechanism.
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