Tata Power Secures Key Karnataka Transmission Project
Mumbai, India – Tata Power Company Ltd. announced today that it has received a Letter of Intent (LOI) from REC Power Development and Consultancy Ltd (RECPDCL), a wholly-owned subsidiary of REC Ltd., for a significant electricity transmission project in Karnataka.
The project involves the acquisition of Ryapte Power Transmission Ltd., a special purpose vehicle (SPV), and will be executed under a build-own-operate-transfer (BOOT) model. Tata Power will provide transmission services for a period of 35 years from the Scheduled Commercial Operation Date (SCOD), which is anticipated within 30 months following the transfer of the SPV.
Extensive Network Development
This crucial infrastructure initiative entails the development of an extensive 250-kilometer transmission network across Karnataka. The network will comprise 400 kV double-circuit transmission lines, 220 kV double-circuit lines, and advanced 220 kV underground cable systems. The annual transmission charges for the project are set at Rs 521.07 crore.
As part of the project, Tata Power will establish key substations: a 5x500 MVA, 400/220 kV air-insulated substation (AIS) at Ryapte in Tumkur district and a 3x500 MVA, 400/220 kV gas-insulated substation (GIS) at Doddathaggalli near Hosakote. The transmission corridor will interconnect existing substations at Ryapte, Doddathaggalli, Kolar, Ekarajapura, Hosakote, and Sarjapura, utilizing a combination of overhead transmission lines and underground cable links to enhance grid reliability and capacity.
Market Reaction
Following the announcement, shares of Tata Power Company Ltd. traded on a relatively flat note. The stock saw a slight dip of 0.38% to Rs 401.10, bringing the firm's market capitalization to Rs 1.28 lakh crore. Analysts noted that the stock's relative strength index (RSI) stood at 44.7, indicating it was neither in an oversold nor overbought position on charts.
Tata Power clarified that the contract was awarded by a domestic entity and does not fall under the category of related-party dealings, underscoring the transparency of the acquisition.