This infrastructure investment trust and G R Infraprojects Ltd will jointly bid for identified Tariff Based Competitive Bidding transmission projects
A leading player in the Indian infrastructure sector, G R Infraprojects Limited (GRIL) and India Grid Trust, an infrastructure InvIT recently announced a strategic partnership in the Indian Power Transmission sector. They signed an MoU to jointly bid for identified TBCB (Tariff Based Competitive Bidding) transmission projects aggregating to around Rs 5,000 Cr.
Notably, IndiGrid and GRIL have entered into a framework agreement to acquire a 100% stake in Rajgarh Transmission Limited, which GRIL won in March 2022. This project, the official release noted, is part of the Interstate transmission system (ISTS) and comprises a 400/220kV Substation at Rajgarh and a 400kV double circuit Line in Madhya Pradesh.
While GRIL will develop and execute the project, IndiGrid will operate and manage the asset post-acquisition from GRIL upon its COD.
It must be noted that the Ministry of Power had recently unveiled a plan for investment of Rs 2,50,000 Cr in building transmission infrastructure for meeting the vision of 500 GW of renewable energy capacity by 2030 to meet its energy transition goal.
The partners believe that this meaningful opportunity must be harnessed by the private sector to participate in the journey of energy transition and shape the future of the power landscape and enrich countless lives across the country.
IndiGrid CEO, Harsh Shah said the following about the partnership: “We are delighted to announce this partnership with GR infra. They have an impeccable track record of executing infrastructure projects in the country. The partnership stands to benefit from GRIL’s strengths of execution and developmental capabilities on the ground and synergies from IndiGrid’s operational portfolio. This partnership is in line with our strategy to acquire value accretive operational transmission assets.”
He further added that the expansion works received across a few existing assets of IndiGrid aggregating to around Rs 230 Cr on a Regulated Tariff Mechanism (RTM) basis, enabled them to leverage their operational and developmental capabilities and contribute towards a sustainable increase in the DPU.
“We believe this partnership with IGT is a significant milestone in the journey towards building a presence in Power Utility for GRIL. With our dynamic synergies, we will establish ourselves as pioneer developers in this sector. Successful closure of this project will bring immense value to both the organisations and the public at large. And we look forward to strengthening this partnership even further”, commented Ashwin Agarwal of GRIL.
25-years-old G R Infraprojects Limited (GRIL) is a listed infrastructure company which executes high-value projects with a stronghold in integrated EPC and project development with experience in design, construction and O&M of various road, railway, metro, and power transmission & distribution projects pan India.
IndiGrid is the first Infrastructure Investment Trust (InvIT) in the Indian power sector. It owns 16 power projects, consisting of 42 transmission lines with over 7,790 ckms of length, 12 substations with around 14,450 MVA transformation capacity and 100 MW (AC) of solar generation capacity. The investment manager of IndiGrid is wholly owned by KKR.
