Power Grid Corporation of India Limited has emerged as the successful bidder for an interstate electricity transmission project in Gujarat.
The state-owned company won the project through tariff-based competitive bidding. The discovered annual tariff is ₹822.91 crore.
POWERGRID received the Letter of Intent on August 21, 2026, according to its exchange filing.
Renewable power integration
The transmission project will help integrate electricity generated from renewable energy projects in Gujarat.
It covers the second phase of the Jam Khambhaliya Renewable Energy Zone, which has a capacity of 5,500 MW.
The project will also support the first phase of the Jamnagar renewable power development, with a capacity of 1,000 MW.
Together, the two parts will enable the transmission network to handle 6,500 MW of renewable electricity.
New substation planned
POWERGRID will establish a gas-insulated switchgear substation at Kalyanpur in Gujarat.
Gas-insulated substations require less space than traditional facilities and can support transmission where land availability may be limited.
The project also includes increasing interconnecting transformer capacity and adding bays at substations under construction in Gujarat.
High-voltage lines
POWERGRID will construct 765-kilovolt transmission lines across Gujarat as part of the project.
Such lines are used to carry large amounts of electricity over long distances with lower transmission losses.
The network will help move renewable power from generation centres to the interstate grid.
BOOT model explained
The project will be developed on a build, own, operate and transfer basis, known as the BOOT model.
Under this structure, POWERGRID will build the transmission assets, own and operate them for an agreed period, and later transfer them under the project conditions.
The company did not disclose the construction cost or completion schedule in its filing.
The win strengthens POWERGRID’s role in expanding India’s high-capacity electricity network. It also supports Gujarat’s growing renewable energy capacity and movement of cleaner power across states.
POWERGRID informed the National Stock Exchange and BSE about the result under SEBI’s disclosure rules.
Disclaimer: This article is based on information disclosed by POWERGRID in its exchange filing and is intended for informational purposes only.
