On October 11, Power Grid Corporation of India (PGCIL) announced the acquisition of ER NER Transmission (ETL) in accordance with its selection as the successful bidder under tariff-based competitive bidding.

The project is a special purpose vehicle (SPV) to establish an inter-state transmission system for system strengthening schemes for eastern and northeastern regions. 

“The inter-state transmission system comprises of upgradation works at 400/132kV Banka (Bihar) with an implementation schedule of 24 months and establishment of 220kV D/C Transmission lines passing through the states of Assam & Arunachal Pradesh and bays extension works with implementation schedule of 36 months,” the company said.

The aggregate value of ETL acquisition of about Rs 7.04 crore, which includes 50,000 equity shares issued at par along with assets and liabilities of the company. PGCIL acquired ETL’s 100 per cent stake.

On October 6, 2021, ETL was formed by the bid process coordinator. The entity is yet to start commercial operation; no turnover has been recorded during incorporation. The entity will be operating in India and is engaged in the business of transmission of power.

PGCIL is incorporated by the Government of India (GoI) as the central transmission utility of India. The Government of India has a 51.34 per cent stake in the company. The company’s net profit went down by 36.6 per cent to Rs 3,801.19 crore in the first quarter of FY23 compared with Rs 5,998.28 crore recorded in the first quarter of FY22. The PGCIL were down by 0.19 per cent to Rs 208.55 on the Bombay Stock Exchange (BSE).