State-owned Power Grid Corporation (PGCIL) will purchase IL&FS Energy Development Company Ltd’s (IEDCL) equity shareholding in Cross Border Power Transmission Company Ltd (CPTCL).
The company’s board approved the proposal during its meeting on Sunday. Financial details were not disclosed.
According to a regulatory filing on Monday, the company’s board has cleared the proposal for purchase of 77,30,225 equities of IEDCL in CPTCL.
Currently, Power Grid owns 26 per cent stake in CPTCL while 38 per cent shareholding is with IEDCL. Besides, SJVN and Nepal Electricity Authority have 26 per cent and 10 per cent stakes, respectively.
Power Grid Corporation of India (Power Grid) has received board approvals to acquire 77.30 lakh shares held by IL&FS Energy Development Company (IEDCL) in Cross Border Power Transmission Company (CPTCL).
IEDCL holds a 38% stake in CPTCL (totalling to 1.85 crore shares), while the remaining is held by joint venture partners Powergrid (26%), Satluj Jal Vidyut Nigam (26%) and Nepal Electricity Authority (10%).This acquisition of over 77.30 lakh shares, approved by the Power Grid’s board, amounts to divestment of nearly 43% stake (of the 38%) held by IEDCL in CPTCL.
CPTC is into building, maintaining and operating transmission systems between India and neighbouring countries such as Nepal, Bhutan, Bangladesh, Myanmar, Sri Lanka and Pakistan.
Earlier in 2020, the crisis-hit infrastructure lending major IL&FS had invited Expressions of Interest (EoIs) for the sale of its energy advisory business, IEDCL. The firm was also into development of generation (conventional and non-conventional), transmission and distribution projects. IL&FS and IL&FS Group together hold 95.54% stake in IEDCL.