Power Grid Corporation of India Limited (POWERGRID) has acquired Kakinada I Transmission Limited (KITL), a special purpose vehicle (SPV) established for the development of the transmission system associated with proposed Green Hydrogen and Green Ammonia projects in the Kakinada region of Andhra Pradesh.
The acquisition was completed on June 29, 2026, after POWERGRID emerged as the successful bidder under the Tariff-Based Competitive Bidding (TBCB) process. The company acquired the project SPV from PFC Consulting Limited (PFCCL), the Bid Process Coordinator, for implementation on a Build, Own, Operate and Transfer (BOOT) basis.
The transmission project involves the establishment of a new 765/400 kV GIS substation, along with STATCOM facilities and 765 kV transmission line infrastructure in Andhra Pradesh. The project is aimed at strengthening evacuation infrastructure for upcoming green hydrogen and green ammonia developments in the Kakinada area under Phase-I of the initiative.
According to the company, KITL operates in the power transmission sector and was acquired as part of POWERGRID’s core business activities following its successful bid under the competitive bidding framework. Prior to the acquisition, POWERGRID had no interest in the entity, and the transaction does not qualify as a related-party transaction.
KITL was incorporated on February 20, 2025, by the Bid Process Coordinator in accordance with the Ministry of Power’s guidelines promoting competition in the development of transmission projects and tariff-based competitive bidding for transmission services.
The acquisition was completed for an aggregate consideration of approximately ₹20.50 crore. The transaction includes 10,000 equity shares acquired at face value of ₹10 per share, along with the assets and liabilities of KITL as on the acquisition date. The final acquisition value remains subject to adjustment based on the audited accounts of the company as of June 29, 2026.
Following the transaction, POWERGRID holds 100% shareholding and control of KITL.
The company stated that all requisite approvals for the transfer of KITL were obtained by the Bid Process Coordinator. Subsequent approvals relating to the grant of a transmission licence and adoption of transmission charges will be sought from the Central Electricity Regulatory Commission (CERC) after the acquisition.
As a newly incorporated project SPV, KITL has not yet commenced commercial operations and has therefore recorded no turnover during the last three years. The company will operate in India and will be engaged in the business of power transmission.
