Power Grid Corporation of India Limited has acquired 100% ownership of Lakadia II Power Transmission Limited through the tariff-based competitive bidding process to develop transmission infrastructure for renewable energy projects in Gujarat. The acquisition was completed on October 12, 2026, when Power Grid took over the project special purpose vehicle from REC Power Development and Consultancy Limited, the bid process coordinator.
The project aims to strengthen the inter-state transmission system for evacuating renewable energy generated within the Lakadia Renewable Energy Zone Phase II in Gujarat, which has a planned capacity of 7,500 MW. The transmission infrastructure will support the integration of renewable power into the grid and facilitate the evacuation of electricity from the region.
The proposed development includes the construction of a new 765/400 kV substation at Lakadia-II in Gujarat and associated 765 kV transmission lines across the state. The project scope also covers the installation and commissioning of a synchronous condenser at the substation, along with the required equipment and transmission bays. These facilities are expected to support grid stability and reliable power transmission as renewable energy capacity expands.
Lakadia II Power Transmission Limited was incorporated on May 9, 2026, by REC Power Development and Consultancy Limited under the Ministry of Power’s guidelines for competitive transmission project development. The company was established specifically to implement the transmission project and has not yet commenced commercial operations. It reported no turnover during the last three financial years.
The total acquisition value is approximately ₹18.43 crore, covering the company’s equity shares and its assets and liabilities as of the acquisition date. The transaction involves 50,000 equity shares with a face value of ₹10 each, and the final consideration remains subject to adjustments based on the company’s audited accounts.
Power Grid had no prior ownership interest in the acquired entity, and the transaction does not constitute a related-party transaction.
Following the acquisition, Lakadia II Power Transmission Limited will pursue a transmission licence and approval for the adoption of transmission charges from the Central Electricity Regulatory Commission. The project aligns with Power Grid’s core transmission business and supports India’s expanding renewable energy infrastructure.
Subscribe to get the latest posts sent to your email.
