PowerGrid Acquires MPTL to Strengthen Mahan Power Project in Madhya Pradesh

Power Grid Corporation of India Limited (POWERGRID), a key player in India's electricity transmission sector, has officially acquired MEL Power Transmission Limited (MPTL). This move was executed under the Tariff-Based Competitive Bidding (TBCB) route and marks another strategic milestone in POWERGRID’s efforts to strengthen its transmission network and support power evacuation infrastructure in the country.

Power Grid’s Strategic Acquisition under TBCB Framework

On 4 June 2025, POWERGRID acquired MEL Power Transmission Limited (MPTL), the Special Purpose Vehicle (SPV) designated to implement the transmission system for evacuating power from the Mahan Energen Limited Generating Station in Madhya Pradesh. The project, awarded via TBCB, involves the development of a 400kV double-circuit transmission line and the construction of associated bays at the existing Rewa Powergrid sub-station.

This acquisition does not fall under related party transactions, and POWERGRID held no prior interest in MPTL. MPTL, incorporated on 19 November 2024 by the Bid Process Coordinator, aligns with the company's core function of power transmission. The acquisition enables POWERGRID to further enhance national grid integration and transmission reliability.

Financial Terms and Regulatory Requirements

The acquisition was made for a total consideration of approximately ₹8.53 crore. This includes 10,000 equity shares at par value along with the assets and liabilities of MPTL as of the acquisition date. The final price remains subject to adjustment following the audit of MPTL’s financials on the same date.

Post-acquisition, POWERGRID now holds 100% shareholding in MPTL. Although MPTL has not yet started commercial operations and has no recorded turnover for the past 3 years, it is expected to operate within India in alignment with POWERGRID’s national objectives. While necessary government approvals for the transfer were secured beforehand by the Bid Process Coordinator, MPTL will now approach the Central Electricity Regulatory Commission for the grant of a transmission licence and the adoption of transmission charges.

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Power Grid Share Performance 

As of June 05, 2025, at 9:20 AM, Power Grid share price is trading at ₹290.80 per share, reflecting a surge of 0.78% from the previous closing price. Over the past month, it has declined by 5.65%.

Conclusion

The acquisition of MEL Power Transmission Limited by POWERGRID under the TBCB mechanism signifies a strategic investment in India's transmission infrastructure. It reinforces POWERGRID’s commitment to efficient power evacuation and national energy integration through robust infrastructure development.

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