Power Grid Corporation of India Ltd (PGCIL) acquired “Khavda V-A Power Transmission Ltd” from REC Power Development & Consultancy Ltd (RECPDCL) on November 19, 2024. This project, valued at Rs 250 billion, is the largest interstate transmission system (ISTS) scheme awarded under the tariff-based competitive bidding (TBCB) mechanism.
The project is India’s first TBCB-awarded transmission scheme employing HVDC technology, a departure from the earlier regulated tariff mechanism (RTM) for most HVDC projects. PGCIL will earn annual transmission charges of Rs 40.83 billion, marking the highest tariff for any ISTS-TBCB scheme to date.
PGCIL secured the project after a closely contested e-reverse auction, edging out Adani Energy Solutions and Sterlite Power. The L2 bid was just 0.5% higher, while the L3 bid was significantly higher by 34%.
The Khavda V-A project spans Gujarat and Maharashtra, involving two 6,000 MW, ±800kV HVDC terminal stations and a 1,200 km ±800kV HVDC bipole line. The project is set for phased commissioning: Bipole-I in 48 months and Bipole-II six months later.
PGCIL is also bidding for two more HVDC projects under the TBCB mechanism. Meanwhile, FY25 is shaping up as a landmark year for the company, with 15 ISTS-TBCB scheme wins consolidating its leadership in this domain.