India`s Sterlite, China`s State Grid, and Colombia`s Isa clinched licenses to build power transmission lines in Brazil in a government auction on Thursday that is expected to draw a total of 6 billion reais ($1.55 billion) in investment.
Some 47 companies and consortia registered to present bids at the auction at Sao Paulo`s stock exchange B3, which led to a competitive round.
Under auction rules, the companies that offered the biggest discounts in the tariffs would win. Brazil`s electricity regulator, Aneel, registered a 55 percent fall in average tariffs the companies will be allowed to charge.
Cteep, a unit of Colombia`s Isa, won two projects, with projected investments of 880 million reais, while CPFL, a subsidiary of China`s State Grid, was granted a project that is slated to cost about 102 million reais.
Electricity heavyweights such as Portugal`s EDP and Spain`s Iberdrola, bidding through their joint venture Neoenergia, left empty-handed, amid the hot competition.
The licenses include a 30-year contract to operate the lines, with pre-defined annual revenues coming from the tariffs to be charged for the service.
($1 = 3.8617 reais)
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.