Remgro-backed EXSA applies for cross-border electricity trading license

Rajesh Power Services Limited announced the receipt of a comprehensive order worth INR 1628.74 crore, including taxes, from Dakshin Gujarat Vij Company Limited (DGVCL). This order involves converting existing overhead high and low voltage power distribution systems into underground cable systems.

According to the company's statement, the project will be implemented over 24 months. Thanks to this contract, the company's total order book will increase to approximately INR 5400 crore.

As part of this 24-month project, Rajesh Power will modernize existing 11/22 kV (HT & LT) overhead power distribution networks into modern underground cable systems equipped with SCADA-compatible equipment at various sites under the DGVCL SI Scheme.

Securing this contract has increased the company's cumulative order portfolio from approximately INR 4000 crore to INR 5400 crore, representing a growth of about 35 percent. This new contract follows a previous order worth INR 471.92 crore received from Madhya Gujarat Vij Company Limited (MGVCL).

Financial Performance and Market Reaction

The announcement of the order came against the backdrop of the company's financial results for the first half of the fiscal year 27. Rajesh Power reported a 35 percent year-on-year growth in Profit After Tax (PAT), reaching INR 79.22 crore compared to INR 58.8 crore in the second quarter of fiscal year 26.

Total revenue for the period from April to September of fiscal year 27 grew by 46 percent, amounting to INR 931.8 crore. The company attributed this revenue growth to the execution of projects at GIS/AIS substations and transmission lines.

Following the order announcement, Rajesh Power shares began to rise, showing a gain of more than 3.6 percent in a single trading session, reaching the level of INR 825. The company's market capitalization was estimated at approximately INR 1470 crore.

Rajesh Power Services operates in the power transmission and distribution sector as an EPC company (Engineering, Procurement, and Construction). The company has offices in the states of Gujarat, Rajasthan, Uttarakhand, Maharashtra, Madhya Pradesh, and Odisha.

The South African government is considering using the Taxi Recapitalization Grant to support operators in transitioning to electric transport. Transport Minister Barbara Crisi told Newzroom Afrika that her department is studying ways to apply this grant to assist the taxi industry in moving to electric vehicles.

She noted that there is a concern: while those who can afford electric vehicles will be able to make the transition, many public transport operators may fall behind due to the high cost of such vehicles.

Rising fuel prices are putting pressure on taxi operators

The minibus taxi sector is one of the main forms of public transport in South Africa, transporting millions of passengers daily. However, rising fuel prices have created significant pressure on taxi operators, some of whom are forced to pass on increased costs to passengers through fare hikes.

In April 2026, a sharp increase in the prices of gasoline and diesel fuel prompted calls for taxi fare increases, further increasing the financial burden on citizens who are already facing cost of living challenges. The high cost of fuel has also led to electric vehicles being discussed as a potential way to reduce operating costs for taxi drivers.

What is the Taxi Recapitalization Grant?

The Taxi Recapitalization program was first approved by the Cabinet in September 1999 and launched in October 2006. The goal of the program was to replace old and unsafe minibuses with newer vehicles that meet safety standards. Initially, R7.7 billion was allocated to this program over seven years.

Under this program, taxi operators received compensation for scrapping old vehicles when they were handed over for disposal. According to the Department of Transport, a total of 72,653 taxis were scrapped by September 2018, and operators were paid R4.4 billion in scrapping compensation.

The government of Cabo Verde has announced its intention to provide electricity to the entire population of the country by 2028. The Minister of Coordination of Special Projects and Fund Access stated that the goal is to connect households that currently lack electricity access, as well as to legalize illegal connections.

José Carlos Moniz voiced this objective during a panel discussion on energy at the II Forum for Investment in Portuguese-Speaking Africa, held on Sal Island. Currently, electricity coverage in the country stands at 97%, and it is expected that the remaining 3% will be connected.

This task is enshrined in the National Pact under Mission 300 (M 300). This mission provides for structured partnership with the African Development Bank (AfDB) and the International Finance Corporation (IFC) to expand electricity access across the African continent.

With the support of these two financial institutions, 35 countries have already defined their pacts with plans to expand power grids. These plans are based on public policy reforms and attracting state, private financing, as well as funds from development institutions.

Cabo Verde also forecasts reaching 70% renewable energy sources by 2031 and 100% by 2040, estimating the necessary investment volume at $520 million by 2031, including $295 million in private capital.

Guinea-Bissau presented its pact, where electricity access covers 40% of the population, while basic healthcare and education services remain without power. The Guinea-Bissau document indicates achieving universal electricity access by 2030 under an ideal scenario, requiring $700 million in investments, of which $280 million is private capital.

Pedro Coutinho, founder and CEO of Source Energy, which handles renewable energy projects, noted that national pacts help investors understand each country's goals and work 'based on this ambition.' He told Lusa that his company is studying the markets of Cabo Verde and Guinea-Bissau.

Coutinho considers technical assistance from the IFC and AfDB important because it allows 'participation in everything that has already been conceived, that has already been developed. This greatly helps minimize project development time.' He emphasized that for developing countries, it is crucial 'not to depend on oil-producing countries.'

He added that natural resources such as sun or wind do not require transportation, are not subject to rising oil prices or logistical corridors, and thanks to technological progress 'can be compensated by batteries.' Coutinho argued that 'independence' from logistics chains and oil producers is 'an important part of the future of these countries.'

The Forum for Investment in Portuguese-Speaking Africa, which began on Monday and concludes today on Sal Island, is organized by the IFC, a World Bank Group member specializing in the private sector. According to updated IFC data, over the past five years, this organization has mobilized about $1.2 billion (approximately one billion euros) in 10 projects in Portuguese-speaking African countries.