PFC transfers two transmission SPVs to Power Grid, Resonia for over Rs 36 crore

New Delhi: Power Finance Corporation Limited (PFC) has transferred two special purpose vehicles (SPVs) of its wholly owned subsidiary PFC Consulting Limited to successful bidders for a combined consideration of over Rs 36 crore.

The transfers were completed on May 29, after the completion of tariff-based competitive bidding process for development of interstate transmission projects.

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The first SPV, TUMKUR II RE Transmission Limited, established for the development of the “Transmission System Strengthening at Tumkur-II for Integration of Additional RE Potential (1.5 GW)” project, has been transferred to Power Grid Corporation of India Limited.

PFC received a consideration of Rs 15.46 crore for the transfer of the SPV under the Share Purchase Agreement.

In a separate transaction, Kurnool IV REZ Power Transmission Limited, formed for development of the “Transmission System for Kurnool-IV REZ – Phase-II (3 GW)” project, has been transferred to Resonia Limited, formerly known as Sterlite Grid 32 Limited.

The consideration received for this transfer stood at Rs 20.93 crore.

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PFC noted that the transactions do not fall within the purview of related party transactions and are not in the nature of slump sale. The company also stated that the consideration for transfer of the SPVs was determined in accordance with guidelines issued by the Ministry of Power from time to time.

"The transferred SPVs had negligible contribution to the turnover, revenue, income and net worth of the listed entity during the last financial year," it added.

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