Middle East tensions drive up costs for Adani’s HVDC transmission project
The Maharashtra Transmission Committee (MTC) has recommended a revised cost of Rs 14,143 crore for Adani Electricity Mumbai Limited – Transmission’s (AEML-T) 1,000 MW Aarey-Kudus High Voltage Direct Current-Voltage Source Converter (HVDC-VSC) Pole-2 scheme, following cost escalation attributed to supply chain disruptions and global demand-supply conditions for VSC-based HVDC systems.
AEML-T attributed the revision to ongoing geopolitical tensions in the Middle East, which it said have affected supply chains for manufacturers and service providers globally. The impact has been compounded by a significant demand-supply imbalance as multiple VSC-based HVDC schemes are under planning or execution worldwide.
Cost escalation
According to AEML-T, the limited number of developers capable of delivering VSC-based HVDC infrastructure, combined with a larger pipeline of projects globally, has created a high-demand, low-supply environment and pushed up costs.
“The change in cost is proposed based on updated market conditions and SOR (Schedule of Rates) benchmarks,” AEML-T representatives submitted to the Committee.
The revised Rs 14,143 crore estimate represents a substantial increase from the previously estimated project cost. MTC considered the impact of geopolitical developments and updated market conditions before recommending the revised proposal for submission to the Grid Coordination Committee (GCC) for approval.
Malad scheme
AEML-T separately sought approval for a revised cost of Rs 843.13 crore for the 220 kV Malad Extra High Voltage (EHV) Scheme. The revision is based on the latest Schedule of Rates (SOR) for FY 2026-27.
The featured photograph (source: Adani Energy) is for representation only.
