Tata Power, India’s largest integrated power company, has announced that it has won the bid to acquire Jalpura Khurja Power Transmission Limited (JKPTL), a project special purpose vehicle (SPV) set up by REC Power Development and Consultancy, a wholly-owned subsidiary of REC Limited, a non-banking finance company (NBFC) and infrastructure financing company under the Ministry of Power. The acquisition is part of Tata Power’s strategy to expand its transmission portfolio and diversify its revenue streams.
Project details
The project SPV will be developed on a build-own-operate-transfer (BOOT) basis to provide transmission service for 35 years from the scheduled date of commercial operation (SCOD), which is 18 months from the date of SPV acquisition. The estimated cost of the project is Rs 838 crore, which will be funded through a mix of debt and equity. Tata Power will hold 100% stake in the project SPV.
The Jalpura Khurja Power Transmission project involves the construction of approximately 158 km of 765 kV double circuit transmission line and associated bays to evacuate power from the 1320 MW Khurja Super Thermal Power Plant in Uttar Pradesh. The Khurja power plant is being developed by THDC India Limited, a joint venture of the Government of India and the Government of Uttar Pradesh. The power plant is expected to be commissioned by March 2024 and will supply electricity to nine states in northern India. The transmission project will enhance the power supply and reliability in the northern region of the country, which faces frequent power shortages and outages.
Tata Power vision
Praveer Sinha, CEO & Managing Director, Tata Power, said, “We are delighted to receive this prestigious letter of intent for Jalpura Khurja Power Transmission project. This project will further strengthen our position as one of the leading power transmission companies in India. We are committed to executing this project within the stipulated timelines and deliver quality service to our customers.”
Tata Power is one of the largest power transmission companies in India with a cumulative transmission network of more than 12,000 circuit km. The company has been expanding its presence in the transmission sector through organic and inorganic growth opportunities. Tata Power has recently acquired two transmission projects in Odisha and Rajasthan, which are under construction. Tata Power also operates several inter-state and intra-state transmission projects across India through its subsidiaries and joint ventures.
Tata Power aims to achieve carbon neutrality by 2050 and contribute to India’s renewable energy targets. The company has a renewable energy portfolio of 4,007 MW, which accounts for 31% of its total generation capacity. Tata Power plans to increase its renewable energy capacity to 15,000 MW by 2025 and 25,000 MW by 2030.
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