RInfra demerges to create REGSPL (India)
Reliance Infrastructure Limited (RInfra) has demerged its Mumbai Power Generation, Transmission and Distribution Division; Goa Power Station Division; Samalkot Power Station and Windmill Division into a separate subsidiary called Reliance Electric Generation and Supply Private Limited (REGSPL), for a consideration of Rs 62.83 billion. The company has stated that REGSPL will not be listed separately and there will be no change in the shareholding pattern following the demerger.
Powergrid approves investment of Rs 8.85 billion and transfer of equity in POSOCO
Power Grid Corporation of India Limited’s (Powergrid) board has approved investments aggregating Rs 8.85 billion across two projects. Of this, an investment of Rs 8.09 billion is for strengthening the transmission system for the transfer of power from the Mangdechhu hydroelectric project (HEP) in Bhutan to India. Powergrid aims to commission the transmission line associated with the HEP within 22 months, which corresponds with the commissioning of Unit 1 of the HEP. Further, an investment of Rs 764.8 million has been approved for augmenting the transformer capacity at Mainpuri and Sikar. The additional capacity is scheduled for commissioning in 24 months. In addition, the board has accorded approval for the transfer of the entire equity held by Powergrid in transfer Power System Operation Corporation (POSOCO) to the central government at the agreed purchase consideration.
IPCL to acquire 89 per cent stake in MEPL
India Power Corporation Limited (IPCL) has entered into an agreement with France-based ENGIE to acquire the latter’s 89 per cent stake in Hyderabad-based Meenakshi Energy Private Limited (MEPL). MEPL operates a 300 MW coal-based plant at Krishnapatnam in Andhra Pradesh, which is proposed to be expanded to 700 MW by 2017. MEPL has a coal linkage for 300 MW of capacity and has the option to use imported coal owing to the proximity of the plant to a seaport. The price of the deal will be finalised following due diligence.
CG to sell its international power business
Crompton Greaves (CG) has accepted a binding letter of offer from US-based private equity firm First Reserve International Limited for the sale of its international power business (across Europe, North America and Indonesia) at an enterprise value of Rs 8.5 billion. With this, CG aims to reduce its debt and focus on expansion in India.
TPREL to acquire IRRL’s wind farm
Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, has signed a share purchase agreement with Indo Rama Renewables Limited (IRRL) to acquire the latter’s 30 MW wind farm at Sangli in Maharashtra. The wind farm, operated by Indo Rama Renewables Jath Limited, a subsidiary of IRRL, has been operational since 2013 and has a long-term power purchase agreement with Maharashtra State Electricity Distribution Corporation Company Limited. With this, Tata Power’s wind capacity will go up to 570 MW across Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka.
EBRD extends support for grid strengthening (Bosnia and Herzegovina)
The European Bank for Reconstruction and Development (EBRD) has provided financial support worth Euro 8.5 million for an energy management system (EMS), supervisory control and data acquisition (SCADA) and IT upgrade project in Bosnia and Herzegovina. This loan has been provided to the independent system operator of Bosnia and Herzegovina, which will implement the project. The project is aimed at supporting the integration of renewable power in the system, and to help reduce the losses and carbon intensity of the BiH energy sector. It also provides a platform for greater competition, penetration of independent power producers, regional market integration and cross-border trade opportunities. The financing will be used to replace and upgrade the outdated EMS and SCADA systems, introduce new IT systems and construct the necessary infrastructure in line with the requirements of the European Network of Transmission System Operators for Electricity. The total cost of the project is Euro 8.5 million.
JICA provides JPY 2.22 billion for substation improvement (Rwanda)
The Japan International Cooperation Agency (JICA) has signed a JPY2.22 billion grant agreement with the Government of Rwanda for the Project for Improvement of Substations and Distribution Network (Phase II). The project involves the construction and expansion of substations and associated transmission and distribution facilities in Kigali, the capital city, to stabilise power supply and ensure higher efficiency. The scope of the contract involves the construction of the Ndera substation and the Murindi and Kabuga switching stations, the supply of transformers and gas breakers for the Ndera substation, the supply of switching and communication equipment, and the supply of aerial transmission lines and distribution lines for the distribution network. It also involves consultancy services for detailed design, bidding assistance and construction supervision. Energy Development Corporation Limited will take up the project work. The project is likely to lower the risk of large-scale power outages, enable stable supply of power, reduce