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PGCIL inks SHA to set up two joint venture companies

30 Jul 2012 Evaluate

Power Grid Corporation of India (PGCIL) has signed share holders agreement (SHA) to set up two joint venture companies. The company has inked SHA on July 09, 2012 for implementation of 400 kv D/C transmission line between Muzaffarpur (India) and Dhalkebar (Nepal).

For Indian portion of this inter-connection from Muzaffarpur to Sursand (Indian Portion) - about 86 km, a joint venture (JV) company - Cross Border Power Transmission Company (CPTC) has been incorporated in India. In CPTC, the company will hold 26% equity stake, Satluj Jal Vidyut Nigam, India will hold 26% stake, IL&FS Energy Development Company (IEDCL) will hold 38% stake while Nepal Electricity Authority (NEA), Nepal  will hold balance 10% equity stake.

While, for Nepalese portion of this inter-connection from Dhalkebar to Bathnaha (Nepalese Portion) - about 39 km, a JV company - Power Transmission Company Nepal (PTCN) has been incorporated in Nepal. In PTCN, NEA will hold 64% equity stake, the company will hold 26% stake while IEDCL will hold the balance 10% stake.

PGCIL is India’s principal electric power transmission company. It owns and operates most of India’s interstate and inter-regional electric power transmission systems with inter-regional power transfer capacity of about 20,800 MW and wheels nearly 45% of total power generated across India.

Power Grid Corp Share Price

318.05 5.80 (1.86%)
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