Power Grid Corporation of India Ltd (PGCIL) has entered into a shareholder agreement with state transmission utility Rajasthan Rajya Vidyut Prasaran Ltd (RVPNL) to establish a joint venture (JV) company. As per a stock exchange filing, PGCIL will hold a 74% equity stake in the JV, while RVPNL will own the remaining 26%.
The proposed JV aims to execute projects valued at up to Rs 10 billion in a phased manner, focusing on the development of the intra-state transmission system (InSTS) in Rajasthan. The shareholder agreement, signed on September 30, 2024, stipulates that the JV will comprise ten directors, with seven appointed by PGCIL and three by RVPNL.
This move follows a decision by PGCIL’s board of directors on June 21, 2024, to approve the formation of the JV. Previously, on May 30, 2024, PGCIL had reached an agreement with RVPNL to collaborate on this venture, leading to the recent signing of the shareholder agreement.
PGCIL also operates a 50:50 joint venture, “Bihar Grid Company Ltd,” with Bihar State Power (Holding) Company Ltd, established in 2013 to enhance the efficiency of the power transmission system in Bihar. The company is exploring similar joint ventures in other states, including Andhra Pradesh, Uttar Pradesh, and Assam.