Mumbai, September 2025 – Power Grid Corporation of India Limited (POWERGRID) has taken a strategic step to expand its renewable energy transmission capabilities in Karnataka by acquiring Davanagere Power Transmission Limited (DPTL) for approximately Rs 6.53 crore.
Acquisition Overview
DPTL, a special purpose vehicle (SPV), was established to develop the “Transmission System Strengthening at Davanagere for Integration of RE Generation” project. This project focuses on augmentation works at an under-construction sub-station in Davanagere, Karnataka, and operates on a build, own, operate, and transfer (BOOT) basis.
The acquisition was completed through a tariff-based competitive bidding process, and POWERGRID now holds complete control of DPTL’s assets and operations.
Project Scope and Strategic Importance
The Davanagere project is critical for improving the transmission infrastructure required to integrate renewable energy sources into the Karnataka grid. With this acquisition, POWERGRID strengthens its ability to support the growing renewable energy sector in the region, ensuring smoother transmission and better energy management.
Regulatory Approvals
POWERGRID will seek necessary approvals from the Central Electricity Regulatory Commission (CERC) for:
- Grant of transmission license
- Adoption of transmission charges
The acquisition followed all regulatory guidelines, including the “Guidelines Encouraging Competition in Development of Transmission Projects” and the “Tariff-Based Competitive Bidding Guidelines for Transmission Service” issued by the Ministry of Power.
Financial Considerations
The acquisition price of Rs 6.53 crore is subject to adjustment based on DPTL’s audited accounts. DPTL has not yet commenced commercial operations and has not recorded turnover in the past three years.
Strategic Implications
This move reinforces POWERGRID’s commitment to expanding transmission infrastructure, particularly for renewable energy integration. By bringing DPTL under its operations, the company enhances Karnataka’s power transmission capacity and positions itself as a key player in supporting India’s renewable energy growth ambitions.
As India accelerates its transition to renewable energy, acquisitions like this are expected to be pivotal in developing the infrastructure necessary for a sustainable energy future.
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