Power Grid Corporation of India Ltd finds itself in the spotlight due to a significant incident involving its senior management. Uday Kumar, the General Manager, was apprehended by the Central Bureau of Investigation (CBI) for allegedly accepting a bribe of ₹2.5 lakh. This development has raised concerns about the potential impact on investor sentiment and could lead to selling pressure on Power Grid shares in the stock market on Monday.

CBI Investigation into Power Grid Leadership

According to a statement from the CBI, Uday Kumar was allegedly involved in a corrupt transaction with an executive from a Mumbai-based firm, aimed at securing favorable treatment for the company. Both Kumar and the company executive were arrested in Sikar, Rajasthan, highlighting serious governance issues within the corporation.

• Uday Kumar, General Manager, Power Grid Corporation
• Detained for accepting a bribe of ₹2.5 lakh
• Arrest took place in Sikar, Rajasthan

Positive Developments Amidst Challenges

Despite the troubling news, Power Grid has recently announced several positive initiatives that may help stabilize its stock price. On March 21, 2025, the company informed stock exchanges about its acquisition of Fatehgarh II and Barmer I PS Transmission Limited through the Tariff Based Competitive Bidding (TBCB) route.

• Project Overview: Establishment of augmentation at Fatehgarh-II and Barmer-I PS.
• Acquisition Method: Build, Own, Operate, and Transfer (BOOT) basis.
• Bid Process Coordinator: PFC Consulting Limited (PFCCL).

New Projects in Rajasthan and Karnataka

Power Grid’s recent project wins demonstrate its ongoing commitment to expanding its operational footprint. In Rajasthan, the successful bidding for the Fatehgarh II and Barmer I PS projects involves significant upgrades to existing sub-stations.

In a similar vein, Power Grid announced its acquisition of Chitradurga Bellary REZ Transmission Limited under the same TBCB framework. This project aims to integrate the Davanagere/Chitradurga and Bellary Renewable Energy Zones (REZ) in Karnataka.

• Project Highlights:
  • Establishment of new 765/400/220kV pooling sub-stations.
  • Development of transmission lines and upgrades to existing facilities.

Conclusion

While the recent bribery scandal involving Uday Kumar raises concerns about corporate governance at Power Grid, the company’s strategic project acquisitions could provide a counterbalance to negative investor sentiment. Stakeholders will be keenly watching how these developments unfold in the coming days.

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