Tata Power Completes Strategic Acquisition of Paradeep Transmission Limited for INR 18.64 Crore Tata Power has signed the Share Purchase Agreement ('SPA') and acquired 100 per cent equity stake in Paradeep Transmission Limited, a special purpose vehicle.
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In a significant move to strengthen its infrastructure in eastern India, Tata Power has acquired a 100 per cent equity stake in Paradeep Transmission Limited (PTL), a special purpose vehicle (SPV) formed to facilitate critical power transmission projects. The acquisition, valued at INR 18.64 crore, was finalized on Thursday, with a cash consideration and a one-time debt settlement, as per a regulatory filing. This acquisition will support Tata Power's strategic goals of expanding and modernizing transmission services in the region.
Paradeep Transmission Limited, established in November 2023, is part of the Eastern Region Expansion Scheme-XXXIV. It plays a pivotal role in enhancing connectivity across the eastern power grid, specifically designed to provide efficient and reliable transmission from Angul to Paradeep. The project encompasses a ~190 km 765 KV double-circuit (D/C) line, a 765/400 KV gas insulated substation (GIS) at Paradeep, and a series of essential bay extensions. Additionally, it includes a ~12 km 400 KV D/C line connecting OPTCL's Paradeep substation to the Paradeep 765 KV GIS substation.
The initiative aligns closely with Tata Power's vision to boost transmission capabilities across India's diverse regions. With this acquisition, Tata Power reinforces its presence in the eastern corridor, aiming to bridge demand gaps, improve transmission efficiency, and contribute to regional industrial growth.
The Ministry of Power has approved the share transfer, allowing Tata Power to integrate PTL smoothly into its operations. The scheduled commercial operation date (SCOD) for PTL's systems is targeted within 24 months from the acquisition date, setting a rapid timeline for operationalization. Once operational, PTL's infrastructure will be vital for ensuring seamless power delivery across industrial and residential segments in Eastern India.
With a turnover of INR 256.183 crore, Paradeep Transmission Limited represents a substantial addition to Tata Power's portfolio of build-own-operate-transfer (BOOT) assets. This acquisition reflects Tata Power's ongoing commitment to bolstering India's energy infrastructure, advancing reliability, and supporting economic growth through superior power transmission networks.
