Power Grid signs SHA with RVPN to form JV in Rajasthan

 New Delhi: State-owned Power Grid has executed a Shareholders’ Agreement (“SHA”) with Rajasthan Rajya Vidyut Prasaran Nigam Limited.

The Purpose of agreeing is that POWERGRID and RVPN have entered into a SHA to form a Joint Venture Company (“JVC”) for the development of an Intra-State Transmission System in the State of Rajasthan with an equity participation of 74% by POWERGRID and 26% by RVPN.

 Earlier, Power Grid Corporation of India Limited (POWERGRID) executed a Memorandum of Understanding (MoU) with Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) on 10th March 2024 to incorporate a Joint Venture (JV) Company for development of intra-State Transmission System in the state of Rajasthan with an equity Participation of 74% by POWERGRID and 26% by RRVPNL. The proposed JV company shall undertake projects worth upto Rs. 10,000 crore in a phased manner.

POWERGRID and RVPN will hold 74% and 26% Equity Share Capital in the proposed JVC, respectively. POWERGRID and RVPN will have the right to subscribe to the shares in proportion to their respective shareholding in the proposed JVC.

Any change in the proposed JVC's capital structure will require POWERGRID's and RVPN's consent.