IndiGrid wins its first greenfield transmission project

IndiGrid [BSE: 540565 | NSE: INDIGRID], India's first power sector InvIT, has received the Letter of Intent (LOI) from REC Power Development and Consultancy Limited ("REC") to establish a transmission system for evacuation of power from renewable energy projects in Osmanabad area in Maharashtra. This project is envisaged on build, own, operate and maintain ("BOOM") basis for a period of 35 years through tariff based competitive bidding ("TBCB").

The project, with a planned outlay of INR ~1700 million, will consist of one substation of 2 x 500 MVA, 400/220 kV near Kallam and 10 Bays with a LILO multi circuit line of ~18 kms. The project will strengthen the transmission system in Maharashtra by improving the grid availability for evacuation & integration of renewable energy in the state. The project is situated in a low-risk plain topography and is proposed to be completed over the next 15-18 months.

Commenting on the development, Mr. Harsh Shah, Chief Executive Officer, said: "We remain focused on delivering predictable, stable and growing DPU to our unitholders. We plan to channelize incremental net distributable cash flow ("NDCF") and reserves after meeting the DPU guidance, which will enable growth in NDCF in subsequent years. Over the last few years, we have built substantial inhouse capabilities to undertake such projects. While resource deployment towards such green field project will remain a small part of the portfolio, it will enable organic growth opportunities for IndiGrid.

We believe that the electricity sector in India is poised for significant investment over the next 3-5 years given the decadal shift in demand patterns, supportive regulatory push, and technological advancements. We remain focused to participate in the growth cycle by partnering for accretive opportunities in transmission and solar sector."

Source : Equity Bulls

Keywords

IndiGrid InvIT LOI REC TransmissionSystem Osmanabad Maharashtra