India Grid Trust (IndiGrid), India’s first listed power sector infrastructure investment trust (InvIT) and G R Infraprojects Limited (GRIL), one of India’s leading players in Infrastructure sector, have announced a strategic partnership in the Indian Power Transmission sector.
A MoU has been signed to jointly bid for identified TBCB (Tariff Based Competitive Bidding) transmission projects aggregating to approximately ₹ 5,000 Cr. Ministry of Power has recently unveiled a plan for investment of ₹ 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. There is a meaningful opportunity for 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, the statement said.
Additionally, to commence the partnership, IndiGrid and GRIL have entered into a framework agreement to acquire 100% stake in Rajgarh Transmission Limited, which GRIL had won in March 2022. This project is part of the Interstate transmission system (ISTS) and comprises of 400/220kV Substation at Rajgarh and 400kV double circuit Line in Madhya Pradesh. GRIL with its proven capabilities in project execution, will develop and execute the project, while IndiGrid, with its operational and financial capabilities, will operate and manage the asset post‐acquisition from GRIL upon its COD, according to the statement.
Commenting on this partnership, Harsh Shah, Chief Executive Officer of IndiGrid, said, “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. Additionally, the expansion works received across few existing assets of IndiGrid aggregating to ~INR230 Cr on Regulated Tariff Mechanism (“RTM”) basis, enables us to leverage our operational and developmental capabilities and contribute towards 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 public at large. And we look froward to strengthening this partnership even further.”, said Ashwin Agarwal of GRIL.
