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Indi Grid

IndiGrid is an infrastructure investment trust established to own inter-state power transmission assets in India. It was established in 2016 and has acquired seven projects totaling over 4,900 circuit kilometers of transmission lines and four substations with over 7,735 MVA of transformation capacity. These assets generate stable revenue under long-term transmission service agreements.

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MK Tiwari
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56 views

Indi Grid

IndiGrid is an infrastructure investment trust established to own inter-state power transmission assets in India. It was established in 2016 and has acquired seven projects totaling over 4,900 circuit kilometers of transmission lines and four substations with over 7,735 MVA of transformation capacity. These assets generate stable revenue under long-term transmission service agreements.

Uploaded by

MK Tiwari
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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IndiGrid

We are an infrastructure investment trust (“InvIT”) established to own inter-state power


transmission assets in India. IndiGrid was established on October 21, 2016 by our Sponsor,
Sterlite Power Grid Ventures Limited, and is registered with SEBI pursuant to the InvIT
Regulations. Our Sponsor is one of the leading independent power transmission companies
operating in the private sector, with extensive experience in bidding, designing, financing,
constructing and maintaining power transmission projects across India.

We believe that we are well positioned to take advantage of the growth potential of India‘s
power transmission industry given our financial position, support from our Sponsor and the
robust regulatory framework for power transmission in India.

We believe the infrastructure necessary to transmit and deliver electricity is vital to India‘s
continued economic advancement given the inter-regional power deficit resulting from a
mismatch between power generation and load centers and the demand-supply deficit which is
expected to result from India‘s projected GDP growth. Private investment in transmission is a
key focus area for India‘s Ministry of Power.

Our Sponsor is one of the leading independent power transmission companies operating in the
private sector. As of August 31, 2018, our Sponsor has experience of developing 12 inter-state
power transmission projects with a total network of 38 power transmission lines of
approximately 8,001 ckms and ten substations having 14,995 MVA of transformation capacity.
Some of these projects have been fully commissioned, while others are at different stages of
development.

Of the 12 inter-state power transmission projects developed by the Sponsor, we have acquired
seven projects with a total network of eighteen power transmission lines of more than 4,900ckms
and four substations having 7,735 MVA of transformation capacity across eleven states (the
“Portfolio Assets”). Additionally, as part of our growth strategy of acquiring third-party
transmission assets, we acquired Patran Transmission Company Limited ("PTCL") from Techno
Electric & Engineering Company Ltd. ("TEECL") on August 31, 2018 with one substation
having 1,000 MVA of transmission capacity in Punjab. Each of these 8 Portfolio Assets have
been completed and revenue-generating for more than a year. These Portfolio Assets were
awarded (through its subsidiaries) under the ‘tariff based competitive bidding’ mechanism
(“TBCB”) on a ‘build-own-operate-maintain’ (“BOOM”) basis. The power transmission projects
earn revenue pursuant to long-term transmission service agreements (“TSAs”) and Tariff Orders.
These projects receive availability-based tariffs under the TSAs irrespective of the quantum of
power transmitted through the line. The tariff for inter-state power transmission projects in India,
including the Portfolio Assets, is contracted for the period of the TSA, which is up to 35 years
from the scheduled commission date of the asset, which may be renewed in accordance with the
TSA and the Electricity Act, 2003. With periodic maintenance, the assets will have a useful life
of 50 years according to Lahmeye

Tariffs under these TSAs are billed and collected pursuant to the ‘point of connection’ (“PoC”)
mechanism, a regulatory payment pooling system offered to Inter State Transmission Systems
(“ISTS”) such as the systems operated by the Initial Portfolio Assets. Under the PoC mechanism,
payments are made to a central payment pool and the proceeds are distributed proportionately to
all transmission services providers, such as the Initial Portfolio Assets. The availability-based
tariffs and PoC payment mechanism enable a stable and certain cash flow stream.

While infrastructure investment trusts are required to distribute at least 90% of their net
distributable cash flows to our unitholders once at least every six months in every financial year,
according to the InvIT Regulations, we have adopted a quarterly distribution policy. We believe
our power transmission assets, financial position and business model will enable us to offer
stable distributions to our Unitholders.

On the basis of our strengths and through the implementation of our strategies, we believe that
we are well-positioned to capitalize on the growth potential of India‘s power transmission
industry.

IndiGrid is an investment infrastructure trust established to hold assets in under-construction


projects and completed and revenue generating projects in terms of Regulation 18(5) of the
InvIT Regulations.

IndiGrid was settled on October 21, 2016, in New Delhi pursuant to the Trust Deed as an
irrevocable trust in accordance with the Indian Trusts Act, 1882. IndiGrid was registered with
SEBI on 28th November, 2016 under Regulation 3(1) of the InvIT Regulations and has obtained
a certificate of registration certificate from SEBI.

Further, Sterlite Investment Managers Limited (SIML) has been appointed as the Investment
Manager, and SPGVL has been appointed as the Project Manager to IndiGrid. For details about
Parties associated with IndiGrid please refer
*Sterlite Power intends to sell its 15% stake to KKR – post KKR being designated as an
additional Sponsor (subject to SEBI approval)

SGL1 = Sterlite Grid 1 Limited, SGL2 = Sterlite Grid 2 Limited , SGL3 = Sterlite Grid 3
Limited, BDTCL = Bhopal Dhule Transmission Company Limited,

JTCL = Jabalpur Transmission Company Limited,

JTCL operates two EHV overhead transmission lines of approximately 992 ckms in the states of
Chhattisgarh and Madhya Pradesh comprising one 765 kV dual circuit line of approximately 757
ckms from Dharamjaygarh (Chhattisgarh) to Jabalpur (Madhya Pradesh) and one 765 kV single
circuit line of approximately 235 ckms from Jabalpur to Bina in Madhya Pradesh. The Jabalpur -
Bina line of JTCL is India‘s first 765 kV transmission line developed by a private company in
India. The JTCL Project was fully commissioned in September 2015.

RTCL = RAPP Transmission Company Limited, PKTCL = Purulia & Kharagpur Transmission
Company Limited, M TL = Maheshwaram Transmission Limited, PTCL = Patran Transmission
Company Limited, NTL = NRSS XXIX Transmission Limited, OGPTL = Odisha Generation
Phase II Transmission Limited

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