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IndiGrid, India’s pioneering listed power sector Infrastructure Investment Trust (InvIT), has just signed a defining agreement to acquire the NERES XVI Power Transmission project from Techno Electric & Engineering Company Ltd (TEECL) for an enterprise value of up to Rs 460 crore. This strategic move further cements IndiGrid’s commitment to bolstering the nation’s transmission networks and advancing its own disciplined expansion strategy.
Key Takeaways From The Transaction
IndiGrid will acquire NERES XVI Power Transmission Ltd (NPTL), an interstate transmission project strategically located in northeast India, once the project is commissioned and necessary approvals are in place. The enterprise value of the deal is capped at Rs 460 crore
The project comprises a state-of-the-art 400/220/132 kV substation with a massive 1,400 MVA transformation capacity and a 45 km double-circuit transmission line
Targeted commissioning is scheduled for December 2026, after which IndiGrid will take ownership following the Commercial Operation Date (COD)
The asset is expected to generate approximately Rs 49 crore in annual tariff revenues, ensuring stable future income for IndiGrid’s unitholders
Project Details And Structure
TEECL will undertake the project as the developer and EPC (Engineering, Procurement, and Construction) provider, responsible for all execution and project delivery responsibilities
IndiGrid will supervise the development, provide technical oversight, and acquire the project post-commissioning and receipt of regulatory approvals
The project will be acquired in tranches if needed, post-COD, as per the signed definitive agreements and provisions of the Transmission Service Agreement
Significance For IndiGrid’s Growth And Portfolio
This transaction is consistent with IndiGrid’s ongoing strategy to acquire high-quality, long-term contracted infrastructure assets that ensure consistent returns and long-term value creation for stakeholders
As India’s first InvIT in the power sector, IndiGrid now manages 43 power projects including 53 transmission lines, 16 substations, 1.15 GW of solar power capacity, and a significant portfolio of battery energy storage assets. The trust boasts an assets under management value exceeding Rs 32,400 crore
The acquisition continues IndiGrid’s tradition of disciplined growth, leveraging robust governance and strong risk controls to deliver stable distributions. Management has reiterated its FY26 guidance, aiming to deliver a distribution per unit (DPU) of Rs 16, signifying a 7 percent increase, fortified by the cash flow strength of such stable assets
Partnership Dynamics Between IndiGrid And TEECL
The announcement marks another milestone in a robust partnership between IndiGrid and TEECL. Previously, IndiGrid has acquired two operational transmission assets from TEECL, while TEECL has co-invested in unitholder projects and provided end-to-end EPC services
Both companies underscore their shared ethos of driving infrastructure excellence, risk-mitigated delivery, and a commitment to the government’s goal of strengthening the national grid
TEECL’s track record of quality, timely execution, and engineering expertise will combine with IndiGrid’s investment and operational acumen to create sustainable value for all stakeholders
Market Impact And Future Outlook
The share price of IndiGrid Infrastructure Trust stood at Rs 159.61 on August 21, 2025, indicative of steady investor confidence in the entity’s ability to deliver stable returns
Acquisitions like NERES XVI further strengthen IndiGrid’s investment thesis, positioning it as a leader in providing secure, long-term energy infrastructure amid the government’s focus on northeast grid integration and power reliability
The project, once operational, is expected not only to enhance regional grid stability but also amplify IndiGrid’s annual revenues, supporting broader power sector ambitions in one of India’s fastest-developing regions
Final Thoughts
The acquisition of the NERES XVI Power Transmission project is poised to further solidify IndiGrid's position as a powerhouse investor and operator in the Indian energy sector. The move not only exemplifies the value of long-term partnerships between infrastructure specialists but also aligns with India’s push for modern, reliable grid infrastructure. Investors and stakeholders alike are watching closely as IndiGrid continues its trajectory of disciplined, value-centric growth in India’s evolving energy landscape.
Sources: The Economic Times, CNBC-TV18, Angel One, ET EnergyWorld, Rediff Money
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