State-owned Power Grid Corporation of India Limited is set to buy the complete stake of Jaiprakash Power Ventures Limited (JPVL) in the firms' power tranmission joint venture.
Power Grid, a Maharatna PSE under Ministry of Power, has signed a share purchase agreement with Jaiprakash Power Ventures Limited (JPVL) to acquire 74 per cent stake in Jaypee Powergrid Limited-JV (JPL), in which the state-owned PSU holds 26 per cent equity, according to an official release on Monday (23 March).
JPL will become a wholly owned subsidiary of Power Grid following this acquisition, the release added.
According to the release, JPL-JV has developed a 214 Km long EHV power transmission project to evacuate power from Karcham-Wangtoo project in the state of Himachal Pradesh.
The power transmitted is meant for distribution and consumption in states of Himachal Pradesh, Haryana, Punjab, Uttar Pradesh and Rajasthan.
The development comes as the Power Grid is said to be in talks with investors for its first tranche of projects through an infrastructure investment trust (InvIT).
Power Grid is among the first state-owned companies to offer an InvIT as part of the government’s brownfield asset monetisation strategy.
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