Transmission utility Power Grid Corporation of India Ltd (Powergrid) is set to acquire 74 per cent stake in Jaypee Powergrid Ltd-JV (JPL) for an undisclosed amount.
The company on Monday signed a share purchase agreement with Jaiprakash Power Ventures Ltd (JPVL) that will allow it to take full control of the joint venture. Post acquisition, JPL will become a wholly-owned subsidiary of Powergrid.
Powergrid, which currently holds 26 per cent equity in JPL, has developed a 214 km long EHV power transmission project to evacuate power from Karcham-Wangtoo project in Himachal Pradesh.
The power transmitted is meant for distribution and consumption in states of Himachal Pradesh, Haryana, Punjab, Uttar Pradesh and Rajasthan.
This deal comes against the backdrop of Powergrid in advanced talks with investors for its first tranche of projects through an infrastructure investment trust (InvIT) route. Post the first tranche, a Rs 10,000 crore second tranche for the InvIT is also in the works as reported earlier.
The public sector transmission utility is among the first PSU to to offer an InvIT as part of the government's brownfield asset monetisation strategy.