Power Grid Acquires Kakinada I Transmission Limited in Move to Secure Green Energy Infrastructure
Power Grid Corporation of India Limited (POWERGRID) has acquired Kakinada I Transmission Limited (KITL), the project special vehicle (SPV) focused on establishing critical transmission infrastructure for proposed Green Hydrogen and Green Ammonia projects in the Kakinada area. The acquisition was finalized on June 29, 2026.The transaction comes after POWERGRID emerged as the successful bidder in a Tariff Based Competitive Bidding process coordinated by PFC Consulting Limited (PFCCL). This strategic acquisition ensures the necessary transmission systems are in place for future large-scale green energy development in Andhra Pradesh.
Project and Acquisition Details
The project involves setting up a new 765/400kV GIS Substation along with associated STATCOM and 765kV transmission line works in Andhra Pradesh. KITL, the target entity, specializes in the Power Transmission industry and was incorporated on February 20, 2025, as per guidelines set by the Ministry of Power (MoP).The acquisition secured a 100% shareholding in Kakinada I Transmission Limited. The transaction involves cash consideration, with KITL being acquired for an aggregate value of about Rs. 20.50/- Crore. This cost includes the purchase of 10,000 equity shares at par (priced at Rs. 10/- each), along with all assets and liabilities of KITL as they stood on the acquisition date.
Target Company Background
Kakinada I Transmission Limited (KITL) is engaged in the business of power transmission, aligning directly with Power Grid’s core business operations. While KITL was incorporated recently, having yet to commence commercial operations, it will be operating within India.The details regarding the target entity and the nature of the acquisition are summarized below:
| Aspect | Detail |
|---|---|
| Target Entity | Kakinada I Transmission Limited (KITL) |
| Industry | Power Transmission |
| Acquisition Status | 100% shareholding secured by POWERGRID |
| Valuation | Rs. 20.50/- Crore, including assets and liabilities |
| Operational Status of KITL | Yet to start commercial operations |
POWERGRID Stock Price Movement
Power Grid Corporation of India Limited gained 1.09% today, successfully closing at ₹286.25 after trending higher in post-market trading. The stock saw brisk activity, with nearly 17 million shares changing hands during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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