The Tata Power Company Limited has announced a significant development in its transmission portfolio, confirming the receipt of a Letter of Intent (LOI) for a major acquisition and subsequent long-term project.
This strategic move involves the acquisition of Jejuri Hinjewadi Power Transmission Limited, a dedicated project special purpose vehicle (SPV).
The LOI was awarded by REC Power Development and Consultancy Limited, a wholly owned subsidiary of REC Limited. This is classified as a domestic transaction.
The project structure is defined as a Build-Own-Operate Transfer (BOOT) basis. Under this agreement, the acquired SPV, Jejuri Hinjewadi Power Transmission Limited, is mandated to provide transmission services for a robust period of 35 years.
The transmission service agreement period commences from the Scheduled Commercial Operation Date (SCOD). The SCOD is targeted for execution 24 months after the effective date of the SPV transfer.
The scope of work for this domestic contract involves the construction and commissioning of approximately 115 km of 400 kV double-circuit (D/c) line connecting Jejuri and Hinjewadi. Additionally, the project includes the extension of 400 kV GIS line bays at substations located in both Jejuri and Hinjewadi.
Financially, the transmission services associated with this lengthy award have a broad consideration structure based on Annual Transmission Charges, set at ₹ 155.78 crore.
The company confirmed that this transaction does not fall within related party transactions and that the promoter/promoter group has no interest in the entity that awarded the LOI.
Signed by Vispi S. Patel, Company Secretary. Disclosure made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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