Kohima-Mariani Transmission (KMTL) is a joint venture between KPTL and Techno Electric & Engineering Company (TEECL) with KPTL holding 74% of equity.

KMTL was set-up to implement a transmission system under North Eastern Region Strengthening Scheme (NERSS-VI) on Build Own Operate and Maintain (BOOM) basis. Earlier in July 2020, KMTL had commissioned Element-1 (Substation) and Element-3 (New Kohima - New Mariani Line).

KMTL has now successfully commissioned Element-2 (Imphal-New Kohima Line) of the project. With this, the project stands completed, KPTL said in a statement after market hours on Friday, 13 November 2020.

The project was won under a competitive bidding process conducted by PFC Consulting (PFCCL). The scope of work involved designing, financing, constructing, commissioning and operating of 254 kms of 400 KV transmission line. The transmission line passes through three states i.e. Manipur, Nagaland and Assam.

Commenting on the completion, Manish Mohnot, MD & CEO of KPTL said, We are pleased to announce the complete commissioning of the KMTL Transmission Asset. In line with our business plan, we will now swiftly proceed towards the divestment phase of KMTL. This asset has already been divested to CLP India and the process of transaction closure will be completed soon. The successful implementation and divestment of T&D assets reinforces, complements and accelerates KPTL's strategy to drive future growth in the core EPC business and enhance shareholder value.”

KPTL is one of the largest specialized EPC companies in India engaged in power transmission & distribution.

Shares of KPTL have surged 18.39% in three days from its previous closing low of Rs 249.60 posted on 12 November 2020.

On a consolidated basis, the company's net profit rose 1.5% to Rs 139 crore on a 5.7% decline in net sales to Rs 3,032 crore in Q2 September 2020 over Q2 September 2019.

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Net profit of Kalpataru Power Transmission rose 9.09% to Rs 144.00 crore in the quarter ended September 2020 as against Rs 132.00 crore during the previous quarter ended September 2019. Sales declined 5.72% to Rs 3032.00 crore in the quarter ended September 2020 as against Rs 3216.00 crore during the previous quarter ended September 2019.

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Kalpataru Power Transmission will hold a meeting of the Board of Directors of the Company on 4 November 2020.

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Kalpataru Power Transmission announced that the World Bank Group on 6 October, 2020 announced a settlement with the Company pertaining to the World Bank's position that the Company had failed to disclose intended payments to third parties when submitting bids in respect of two World Bank-financed projects in the years 2010 and 2012.

Under the settlement, KPTL and its controlled affiliates in transmission line business have agreedto sanctions due to which KPTL and its controlled affiliates in the transmission line businesscannot participate in World Bank Group-financed projects and operations for a period of 12months and 1 day, post which the World Bank will continue to monitor the compliance programfor and the Company's continued cooperation with the World Bank Group Integrity VicePresidency for the next five months, during which period KPTL and its affiliates in transmissionline business may participate in such projects and operations. The settlement does not entailmonetary penalty on KPTL and its affiliates.

As per the terms of the settlement, the Company has committed, among other things, to continue developing and enhancing an integrity compliance program consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines.

The debarment of the Company and its controlled transmission line affiliates qualifies for crossdebarment by a few other Multilateral Development Banks (MDBs) under the Agreement forMutual Enforcement of Debarment Decisions.

KPTL has order book visibility for next two years and the current sanctions will not impact theprojects under execution. The Company does not see material impact on its operations andfinancial position due to the above sanctions.

The settlement does not impose any sanctions on JMC Projects (India) and Shree Shubham Logistics and their respective subsidiaries and joint venture company.

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