Power Grid Corporation of India has acquired Lakadia II Power Transmission, a special purpose vehicle tasked with building transmission systems for 7,500MW of renewable energy projects in Gujarat. The Rs 18.43 crore acquisition secures 100% equity control, enabling the firm to expand its inter-state transmission footprint under a build, own, operate, and transfer model.
Power Grid Acquires Lakadia II Power Transmission for Rs 18.43 Crore
Acquisition cost: Rs 18.43 crore for 100% stake.
Project scope: Integration of 7,500MW renewable energy in Gujarat.
Reader Takeaway: Expansion of transmission assets for green energy integration, though dependent on future CERC regulatory approvals.
What just happened
Power Grid Corporation of India Limited has successfully acquired Lakadia II Power Transmission Limited. The company won the project through the government’s Tariff Based Competitive Bidding (TBCB) route. The acquisition involves 100% equity ownership, with the purchase price set at approximately Rs 18.43 crore. This includes all existing assets and liabilities of the SPV as of the acquisition date.
Why this matters
This project is central to the national goal of integrating renewable energy into the power grid. Specifically, it focuses on the Lakadia Renewable Energy Zone (REZ) in Gujarat. The infrastructure planned includes a new 765/400kV sub-station, high-voltage transmission lines, and the installation of a synchronous condenser to stabilize power delivery.
What changes now
As the new owner, Power Grid is now responsible for the project's development, operation, and maintenance under a Build, Own, Operate, and Transfer (BOOT) framework. The entity is currently in a pre-operational stage with no prior turnover. The company must now secure a formal transmission license and gain approval for its transmission charges from the Central Electricity Regulatory Commission (CERC) to begin operations.
Risks to watch
Success hinges on timely regulatory clearances from the CERC and the eventual physical execution of the transmission infrastructure in Gujarat. Delays in land acquisition or regulatory approvals are typical risks for large-scale power infrastructure projects.
What to track next
Investors should monitor official updates regarding the grant of the transmission license and subsequent project milestones, such as the commencement of construction for the 765/400kV sub-station.