Tata Power wins Karnataka transmission project with annual charges of ₹521 crore

Tata Power Company Ltd. has received a Letter of Intent (LOI) from REC Power Development and Consultancy Ltd (RECPDCL), a wholly-owned subsidiary of REC Ltd, for the acquisition of Ryapte Power Transmission Ltd, a project special purpose vehicle, with annual transmission charges of ₹521.07 crore.In an exchange filing on Friday, June 19, the company said that the project will be developed on a build-own-operate-transfer (BOOT) basis and will provide transmission services for 35 years from the Scheduled Commercial Operation Date (SCOD), which is scheduled 30 months after the SPV transfer.

The project involves the construction and commissioning of an approximately 250-km transmission network in Karnataka, comprising 400 kV double-circuit lines, 220 kV double-circuit lines and 220 kV underground cables.
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It also includes the establishment of a 5×500 MVA, 400/220 kV air-insulated substation (AIS) at Ryapte in Tumkur district and a 3×500 MVA, 400/220 kV gas-insulated substation (GIS) at Doddathaggalli near Hosakote, along with associated bus reactors.The transmission network will connect Ryapte, Doddathaggalli, Kolar, Ekarajapura, Hosakote and Sarjapura substations through a combination of overhead transmission lines and underground cable links.

Tata Power said the contract has been awarded by a domestic entity and does not constitute a related-party transaction.

Shares of the company were trading at the day’s lows, down almost 0.5% on Friday at ₹400.95. The stock has gained 5% this year, so far.

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