Power Grid Buys Fatehgarh II Transmission for ₹19.11 Crore

GURUGRAM — State-owned electric utility company Power Grid Corporation of India Limited (POWERGRID) formally acquired 100 percent equity stake in Fatehgarh II Transmission Limited on Friday, August 28, 2026.

The Project Special Purpose Vehicle (SPV) was transferred from the Bid Process Coordinator, PFC Consulting Limited, after Power Grid emerged as the successful bidder under the Tariff-Based Competitive Bidding (TBCB) framework. The acquisition was executed for an aggregate consideration of approximately ₹19.11 crore, which includes 10,000 equity shares acquired at par at ₹10 each along with all underlying assets and liabilities as of August 28, 2026. The acquisition represents a key operational step in expanding India's inter-state power transmission infrastructure to support renewable energy integration.

Technical Project Details and Scope of Infrastructure

Fatehgarh II Transmission Limited was established to execute an Inter-State Transmission System project on a Build, Own, Operate, and Transfer (BOOT) basis.

The project focuses on grid stabilization and reactive power management in high-density renewable energy zones. According to regulatory filings, the primary mandate of the project SPV is the installation and commissioning of two Synchronous Condensers (SynCon) units at the 765/400/220kV Fatehgarh-II Pooling Station in Rajasthan, along with associated line bays. Synchronous condensers provide essential inertia and voltage support to ensure dynamic stability across the regional power grid as large volumes of solar power enter the transmission system.

Financial Parameters and Regulatory Compliance

Power Grid Corporation of India Limited executed the corporate transfer in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

• Acquisition Cost: Aggregate value of approximately ₹19.11 crore, subject to final audit adjustments.

• Shareholding Acquired: 100 percent equity control (10,000 equity shares at ₹10 par value).

• Transferring Entity: PFC Consulting Limited (Bid Process Coordinator).

• Incorporation Date: May 6, 2026, under Ministry of Power competitive bidding guidelines.

Following the acquisition, Fatehgarh II Transmission Limited will apply to the Central Electricity Regulatory Commission (CERC) for the formal grant of a transmission license and the adoption of transmission charges. Power Grid confirmed that prior to this transaction, it held no related party interest in the acquired SPV, ensuring full compliance with arm's-length commercial practices.

Market Context and Impact on Power Sector

The acquisition aligns with India's long-term national energy transition goals, which rely heavily on scaling up transmission capacity to evacuate green energy from high-potential solar parks in Western India.

As intermittent renewable energy penetration increases, grid stability equipment like synchronous condensers becomes essential to prevent frequency fluctuations and voltage collapse. For investors and industry stakeholders, the addition of Fatehgarh II Transmission Limited expands Power Grid's regulated asset base, providing steady, long-term tariff revenues under BOOT concessions.

Official Sources Section

According to official corporate filings submitted to BSE Limited (Scrip Code: 532898) and the National Stock Exchange of India Limited (NSE Symbol: POWERGRID) on August 28, 2026, by Company Secretary Anjana Luthra, Power Grid completed the acquisition of Fatehgarh II Transmission Limited. Detailed corporate information is available on the official website of Power Grid Corporation of India Limited.

Quote Section

"According to officials from Power Grid Corporation of India Limited, the company acquired Fatehgarh II Transmission Limited on August 28, 2026, for an aggregate value of about ₹19.11 crore following its selection as the successful bidder under Tariff-Based Competitive Bidding."

Why It Matters

The acquisition of Fatehgarh II Transmission Limited allows Power Grid to install critical grid-stabilizing synchronous condensers at the Fatehgarh-II Pooling Station. This infrastructure ensures uninterrupted power evacuation from large-scale solar projects in Rajasthan, protecting regional electricity grids against sudden voltage drops and maintaining overall power distribution reliability across national corridors.

Key Facts at a Glance

• Acquisition Value: Approximately ₹19.11 crore for 100% equity stake.

• Acquired Entity: Fatehgarh II Transmission Limited (Project SPV).

• Target Installation: 2 Synchronous Condensers (SynCon) units at the 765/400/220kV Fatehgarh-II PS.

• Bidding Route: Tariff-Based Competitive Bidding (TBCB) via PFC Consulting Limited.

• Regulatory Approvals: Transmission license and tariff adoption to be filed with CERC.

Frequently Asked Questions

What did Power Grid acquire on August 28, 2026?

Power Grid acquired 100 percent equity control of Fatehgarh II Transmission Limited from PFC Consulting Limited for approximately ₹19.11 crore.

What is the purpose of Fatehgarh II Transmission Limited?

The project SPV is responsible for installing and commissioning two Synchronous Condensers at the 765/400/220kV Fatehgarh-II Pooling Station on a BOOT basis.

Which regulatory body will approve the transmission license for the project?

Fatehgarh II Transmission Limited will apply to the Central Electricity Regulatory Commission (CERC) for the grant of a transmission license and adoption of transmission charges.

Did Power Grid have any prior interest in Fatehgarh II Transmission Limited?

No, Power Grid had no prior interest or related party connection to the entity before the TBCB acquisition.

Source: Official regulatory filing submitted to BSE Limited and National Stock Exchange of India Limited by Power Grid Corporation of India Limited on August 28, 2026.