New Delhi: Power Grid Corporation of India Limited (POWERGRID) has acquired a 100% stake in Fatehgarh II Transmission Limited for ₹19.11 crore, strengthening its portfolio of inter-state transmission projects.
The acquisition was completed on August 28, 2026, following POWERGRID’s selection as the successful bidder under the Tariff Based Competitive Bidding (TBCB) route.
POWERGRID Acquires Fatehgarh II Transmission Limited
Fatehgarh II Transmission Limited is a project-specific special purpose vehicle (SPV) established for the development of the transmission project titled “Installation of 2 Nos. of Synchronous Condenser (SynCon) units at 765/400/220 kV Fatehgarh-II PS.”
Key details of the acquisition are:
- Acquired entity: Fatehgarh II Transmission Limited
- Acquirer: Power Grid Corporation of India Limited
- Stake acquired: 100%
- Transaction value: ₹19.11 crore
- Acquisition date: August 28, 2026
- Bidding route: Tariff Based Competitive Bidding (TBCB)
The process for the sale and transfer of the SPV to POWERGRID was completed on August 28, 2026.
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Fatehgarh II Transmission Project to Install Two SynCon Units
Fatehgarh II Transmission Limited was incorporated on May 6, 2026, by PFC Consulting Limited, the Bid Process Coordinator.
The company has been established to develop an Inter-State Transmission System (ISTS) for the installation of two Synchronous Condenser units at 765/400/220 kV Fatehgarh-II Power Station.
The project will be developed on a Build, Own, Operate and Transfer (BOOT) basis.
The project involves:
- Installation of two Synchronous Condenser (SynCon) units
- Commissioning of the SynCon units
- Development of associated bays
- Implementation of the required transmission infrastructure
Acquisition Value Stands at ₹19.11 Crore
The acquisition consideration of ₹19.11 crore includes 10,000 equity shares with a face value of ₹10 each, along with the assets and liabilities of the target entity as on the acquisition date.
The final consideration is subject to adjustment based on the audited accounts.
The consideration for the sale and transfer of the SPV has been determined in accordance with the guidelines issued by the Ministry of Power, Government of India, from time to time.
Fatehgarh II Transmission Had No Commercial Operations
As Fatehgarh II Transmission Limited had not commenced commercial operations at the time of acquisition, it had not recorded any turnover during the preceding three years.
POWERGRID also confirmed that the transaction does not constitute a related-party transaction, as the company had no prior interest in the entity.
Following the acquisition, the SPV will need to obtain regulatory approvals relating to the project.
These include:
- Grant of Transmission Licence
- Adoption of Transmission Charges
The approvals are to be obtained from the Central Electricity Regulatory Commission (CERC) by the acquired entity.
Acquisition Strengthens POWERGRID’s Transmission Portfolio
The acquisition adds another transmission project to POWERGRID’s portfolio and supports the development of infrastructure associated with the Fatehgarh-II Power Station.The installation of Synchronous Condensers and associated infrastructure is part of efforts to strengthen the transmission system and support reliable power system operations.
About POWERGRID
Power Grid Corporation of India Limited (POWERGRID) is a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India. The company is India’s central transmission utility and is responsible for planning, implementing, operating and maintaining the inter-state transmission system. POWERGRID also undertakes consultancy, telecommunications and other infrastructure-related activities.
