Kandla green hydrogen transmission project stalls after Reliance withdraws bid
India’s planned transmission system for Green Hydrogen and Green Ammonia manufacturing in Gujarat’s Kandla region has been put on indefinite hold after Reliance Industries Ltd. (RIL) withdrew from the bidding process and no formal General Network Access (GNA) applications were received from developers.
The development was reviewed during the recent meeting of the National Committee on Transmission (NCT).
The transmission scheme, titled “Transmission System for supply of power to Green Hydrogen/Ammonia manufacturing potential in Kandla area of Gujarat (Phase-I: 3 GW),” was intended to support upcoming Green Hydrogen and Green Ammonia projects in the region. However, the NCT noted that the project currently lacks confirmed demand visibility.
Bid process delayed
The bidding process for the Kandla transmission scheme had earlier concluded, and a Letter of Intent (LoI) was issued to RIL on February 19, 2025. However, the transfer of the Special Purpose Vehicle (SPV) was later put on hold by the Bid Process Coordinator (BPC) following communication from the Ministry of Power.
The reason cited was the absence of GNA applications from Green Hydrogen and Green Ammonia developers. According to the meeting minutes, RIL informed authorities on February 18, 2026 that it could not extend the validity of its bid and bid bond because more than a year had passed since submission of its techno-commercial offer and completion of the e-reverse auction process.
A Bid Evaluation Committee (BEC) meeting was subsequently held on April 2, 2026 to consider re-initiating the bidding process. However, the NCT minutes stated that the process remains on hold pending further directions from the Ministry of Power.
Limited developer interest
During the meeting, a representative from Central Transmission Utility of India Limited (CTUIL) informed the committee that no Green Hydrogen or Green Ammonia applications had been received for the Kandla area as of the meeting date.
The only potential interest discussed during the meeting came from M/s L&T Energy GreenTech Ltd. (LTEGL), which submitted a letter dated April 13, 2026 regarding a proposed 300 KTPA Green Ammonia project. According to the submission, the company has signed a term sheet and incorporated an SPV for the project and intends to apply for GNA at a later stage.
The representative from the Ministry of New and Renewable Energy (MNRE) also indicated that there was limited visibility regarding Green Hydrogen project development in the Kandla region.
Lakadia scheme modified
The uncertainty surrounding the Kandla project has also affected the “Transmission system for Integration of Power from RE Projects in Lakadia REZ in Gujarat-Phase II (7500 MW).” According to the NCT, the Lakadia Phase II transmission scheme was dependent on infrastructure planned under the Kandla project.
The original configuration involved Loop-in Loop-out (LILO) of the Halvad-Kandla 765 kV double-circuit line at the proposed Lakadia-II substation over a distance of around 22 km. However, due to uncertainty over the Kandla node, the NCT approved a revised transmission configuration.
Under the modified scope, a new Lakadia-II–Halvad 765 kV double-circuit transmission line of around 140 km will be developed along with associated bays and switchable line reactors at both ends. The revised design bypasses the proposed Kandla node and reroutes power directly to Halvad.
Following the changes, the estimated project cost for the Lakadia Phase II scheme has been revised upward to Rs 8,238 crore.
Voltage level may be reviewed
Expert Member Sh. S.R. Narasimhan, who attended the meeting, stated that the transmission system planned for the Kandla Green Hydrogen and Green Ammonia hub may require further modifications depending on future load demand.
He suggested that the voltage level of the proposed substation itself may need to be reassessed based on the actual scale of project development in the region.
The Kandla transmission project currently remains stalled due to the absence of confirmed developers, lack of GNA applications and withdrawal of the only successful bidder, while connected transmission planning is being revised to accommodate the uncertainty.
The featured photograph is for representation only.
