Why Gujarat’s Kandla hydrogen transmission plan fell through
The National Committee on Transmission (NCT) has recommended de-notification of a 3 GW transmission scheme planned to supply electricity to green hydrogen and green ammonia manufacturing projects in the Kandla area of Gujarat, after the withdrawal of all earlier connectivity applications left the project without committed demand.
The decision was taken at the NCT’s 42nd meeting held earlier this month. The committee also recommended that transmission requirements in the Kandla area be reassessed once firm demand from green hydrogen and green ammonia projects emerges.
Scheme background
The “Transmission System for Supply of Power to Green Hydrogen/Ammonia Manufacturing Potential in Kandla Area of Gujarat (Phase-I: 3 GW)” was originally recommended by the NCT in August 2024 as infrastructure to support the development of green hydrogen and green ammonia manufacturing capacity in the region.
The project subsequently moved into the bidding process, and a successful bidder received a Letter of Intent (LoI) in February 2025. However, the transfer of the special purpose vehicle (SPV) remained on hold, following which the bidder expressed its inability to extend the validity of its bid and the associated bid bond.
The Ministry of Power subsequently asked the Central Transmission Utility of India Limited (CTUIL) to place the matter before the NCT for a comprehensive review.
Demand withdrawn
During the meeting, CTUIL informed the committee that all General Network Access (GNA) applications previously received for the Kandla area had been withdrawn. As a result, there was no committed load to support implementation of the 3 GW transmission scheme.
CTUIL informed the committee that one new connectivity application of 500 MW had been received on July 4, 2026, and was presently under examination. This single pending application did not provide sufficient certainty to proceed with the transmission system in its existing form.
NCT recommendation
Following deliberations, the NCT recommended that the Ministry of Power de-notify the 3 GW scheme rather than proceed without firm demand.
At the same time, CTUIL has been asked to undertake a comprehensive review of transmission requirements for power drawl in the Kandla area once firm green hydrogen and green ammonia loads emerge. This would allow the transmission system to be planned based on confirmed requirements rather than anticipated demand.
The committee also kept open the possibility of accommodating individual projects through the existing Inter-State Transmission System (ISTS) if new demand emerges before a larger transmission scheme becomes necessary.
NCT suggested that in case any new connectivity application is received in the region, CTUIL should explore the possibility of connecting the applicant(s) to nearby ISTS points at appropriate voltage levels.
The recommendation effectively puts the proposed 3 GW dedicated transmission system aside while allowing transmission planning for Kandla to be revisited if green hydrogen and green ammonia projects in the region secure connectivity and establish firm power requirements.
The featured photograph is for representation only.
