Tata Power acquires Bikaner Transmission renewable energy project for Rs 1,544 crore from PFC

Tata Power Ltd announced that it has won the bid to acquire Bikaner-III Neemrana-II Transmission renewable energy project for about Rs 1,544 crore.

The energy project is of a special purpose vehicle (SPV) set up by PFC Consulting Limited, a subsidiary of Power Finance Corporation. A special purpose vehicle (SPV), also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate its financial risks.

The transmission project, to be undertaken on a Build-Own-Operate-Transfer (BOOT) basis, is poised to facilitate the evacuation of 7.7 gigawatts (GW) of renewable energy from the Bikaner Complex in Rajasthan. "The project entails the establishment of a 340 kilometers transmission corridor from Bikaner-III pooling station to Neemrana II substation," the company said in an exchange filing.

Tata Power will maintain the transmission project for 35 years. The project is expected to be commissioned within 24 months from the project SPV transfer date.