Target Entity: Tumkur II RE Transmission Limited (TRETL)

Type of Deal: 100% Acquisition under Tariff Based Competitive Bidding (TBCB) route

Stake/Capacity: 100% stake acquisition. The project involves establishing a "Transmission System Strengthening at Tumkur-II for Integration of Additional RE Potential (2.7 GW)" on build, own, operate and transfer (BOOT) basis.

The project comprises:

  • 400 kV D/c Transmission Line traversing in the state of Karnataka
  • Augmentation works (ICTs and Line Bays) at Tumkur-II Pooling Station

Deal Value: ₹15.46 Crore aggregate value, including:

  • 10,000 equity shares at par value of ₹10 each
  • Assets and liabilities of TRETL as on the acquisition date (May 29, 2026)
  • The acquisition price is subject to adjustment as per the audited accounts of the Company as on the acquisition date

Funding Source: Cash consideration (not specified whether internal accruals or debt)

Financial Impact: Not explicitly disclosed in terms of revenue contribution, EBITDA impact, or margin profile. TRETL is yet to start commercial operation and has recorded no turnover during the last 3 years.

Timeline:

  • TRETL was incorporated on September 24, 2025 by the Bid Process Coordinator (PFC Consulting Limited)
  • Acquisition completed on May 29, 2026 as per timelines furnished by Bid Process Coordinator
  • Approvals for Grant of Transmission License and Adoption of Transmission Charges from Central Electricity Regulatory Commission (CERC) are to be obtained by TRETL after the acquisition by POWERGRID

Strategic Rationale:

  • TRETL has been acquired by POWERGRID pursuant to emerging as the successful bidder under Tariff Based Competitive Bidding
  • TRETL is engaged in the same business as POWERGRID (transmission of power)
  • The project enables integration of additional renewable energy potential (2.7 GW) in the Tumkur region of Karnataka

Approval Status:

  • Requisite approvals for transfer of TRETL were obtained by the Bid Process Coordinator
  • CERC approvals for Transmission License and Transmission Charges pending post-acquisition

Related Party Transaction: No. Prior to acquisition, POWERGRID had no interest as regards related party transaction.

Additional Information:

  • Industry: Power Transmission
  • Country of operation: India
  • Bid Process Coordinator: PFC Consulting Limited (PFCCL)
  • Guidelines followed: "Guidelines Encouraging Competition in Development of Transmission Projects" and "Tariff based Competitive Bidding Guidelines for Transmission Service"