Power Grid Corporation of India (Power Grid) has received board approvals to acquire 77.30 lakh shares held by IL&FS Energy Development Company (IEDCL) in Cross Border Power Transmission Company (CPTCL).

IEDCL holds a 38% stake in CPTCL (totalling to 1.85 crore shares), while the remaining is held by joint venture partners Powergrid (26%), Satluj Jal Vidyut Nigam (26%) and Nepal Electricity Authority (10%).This acquisition of over 77.30 lakh shares, approved by the Power Grid’s board, amounts to divestment of nearly 43% stake (of the 38%) held by IEDCL in CPTCL.

Power Grid’s board of directors approved the proposal at its meeting held on Sunday, the company said in a regulatory update. Financial details of the deal were not immediately disclosed.

CPTC is into building, maintaining and operating transmission systems between India and neighbouring countries such as Nepal, Bhutan, Bangladesh, Myanmar, Sri Lanka and Pakistan.

Earlier in 2020, the crisis-hit infrastructure lending major IL&FS had invited Expressions of Interest (EoIs) for the sale of its energy advisory business, IEDCL. The firm was also into development of generation (conventional and non-conventional), transmission and distribution projects.

IL&FS and IL&FS Group together hold 95.54% stake in IEDCL.