Power Grid Acquires MEL Power Transmission for ₹85.3 Million, Strengthening National Grid Infrastructure

Image Source: PSU Watch

Power Grid Corporation of India Ltd. (POWERGRID) has successfully acquired MEL Power Transmission Ltd. (MPTL) for ₹85.3 million, reinforcing its commitment to expanding India's power transmission network. The acquisition, completed on June 4, 2025, was made under tariff-based competitive bidding (TBCB) as part of the transmission system for evacuating power from Mahan Energen’s generating station in Madhya Pradesh.

Strategic Acquisition & Project Scope:

POWERGRID acquired MPTL, a special purpose vehicle (SPV), for ₹85.3 million, including 10,000 equity shares at face value.
The project involves establishing a 400 kV double circuit transmission line and associated bays at the Rewa PowerGrid substation.

Regulatory Approvals & Operational Framework:

The acquisition is not classified as a related party transaction, and POWERGRID held no prior interest in MPTL.
Regulatory approvals for transmission licensing and tariff adoption will be sought from the Central Electricity Regulatory Commission (CERC).

Market Reaction & Financial Performance:

POWERGRID’s stock rose 1.87% to ₹294, reflecting investor confidence in its expansion strategy.
The company’s Q4 FY25 net profit stood at ₹4,142.87 crore, with a 2.48% YoY increase in revenue to ₹12,275.35 crore.

Future Outlook & Industry Impact:

The acquisition aligns with POWERGRID’s long-term strategy to strengthen India’s transmission infrastructure, ensuring efficient power evacuation.
The company continues to expand its portfolio, reinforcing its position as India’s central transmission utility.

POWERGRID’s latest acquisition underscores its commitment to modernizing India’s power grid, ensuring seamless energy transmission and infrastructure growth.

Source : Business Standard, CNBC TV18