Tata Group's energy arm, Tata Power Ltd, announced on Friday the acquisition of ERES-XXXIX Power Transmission Ltd for Rs 18.56 crore.
ERES-XXXIX is a Special Purpose Vehicle (SPV) company involved in power transmission, and Tata Power completed the acquisition for 100 per cent of its equity for consideration in cash on November 14, according to a regulatory filing. The Ministry of Power approved the share transfer to Tata Power.
An SPV is a separate legal entity usually created to secure assets, set up joint ventures, isolate risk, and raise capital. According to the filing, ERES-XXXIX was set up in March this year as an SPV on a build-own-operate basis to set up the transmission system at Gopalpur in Odisha.
The transmission network under ERES-XXXI comprises the 190km of 765 KV line from Angul to Gopalpur, the Gopalpur 765/400KV GIS substation, the 765KV AIS Angul bay extension, and the 400KV OPTCL-Gopalpur substation that is to be developed by OPTCL, as per the Tata Power filing.
