Tata Power Receives LOI for Jejuri Hinjewadi Transmission Project

Tata Power Company Ltd has announced the receipt of a Letter of Intent (LOI) from REC Power Development and Consultancy Limited, a subsidiary of REC Limited. The LOI pertains to the acquisition of Jejuri Hinjewadi Power Transmission Limited, a special purpose vehicle (SPV) for a power transmission project.

The project involves the construction of a 400 kV double-circuit transmission line spanning approximately 115 km between Jejuri and Hinjewadi. Additionally, the project includes the extension of 400 kV GIS line bays at substations located in both Jejuri and Hinjewadi. The project will be developed on a Build-Own-Operate Transfer basis, providing transmission services for a period of 35 years from the Scheduled Commercial Operation Date (SCOD), which is set 24 months after the SPV transfer.

The annual transmission charges for this project are set at ₹ 155 crore. The project is classified as a domestic order, and the nature of the contract involves the construction and commissioning of the transmission lines and related infrastructure. The project is expected to be executed over a 35-year period, aligning with the duration of the transmission service agreement.

The filing confirms that there is no interest from the promoter or promoter group in the entity awarding the contract, and the transaction does not fall under related party transactions.

REC Power Development and Consultancy Limited is a wholly owned subsidiary of REC Limited, focusing on power development and consultancy services. The company is involved in various power infrastructure projects, providing expertise in project management and execution.

Tata Power Company Ltd is a leading integrated power company in India, engaged in the generation, transmission, and distribution of electricity. The company focuses on sustainable energy solutions and is involved in various renewable energy projects, aiming to enhance its operational capabilities in the power sector.