PFC forms SPV for NERGS III and issues tender for Tumkur II transmission upgrade

Power Finance Corporation has incorporated a new Special Purpose Vehicle named NERGS III Siang Basin Transmission Limited. The entity is a wholly owned subsidiary of PFC Consulting Limited, which is fully owned by PFC. The SPV will implement the NERGS III Siang Basin transmission project.

The Ministry of Power issued a Gazette Notification on 18 September 2025 that appointed PFC Consulting as the Bid Process Coordinator for selecting a Transmission Service Provider under the tariff based competitive bidding route. The scheme forms part of the interstate transmission system for the North Eastern Region Generation Scheme III. It is designed to support evacuation from the Heo hydropower project of 3×80 MW and the Tato I project of 3×62 MW in the Shi Yomi district of Arunachal Pradesh. It will also help future hydropower development in the Siang sub basin, where around 5,600 MW is expected by 2035. The project cost is estimated at Rs 1,804 crore and commissioning is planned for February 2029.

PFC Consulting has also issued a tender to build a new interstate transmission system to strengthen the network at the Tumkur II substation in Karnataka. The scheme is intended to integrate about 2.7 GW of additional renewable energy capacity. The scope of work covers design, engineering, construction, erection, testing and operation and maintenance. It also includes providing land compensation, equipment and materials.

The upgrade will involve adding 400/220 kV 3×500 MVA ICTs as the fifth to seventh units and another 400/220 kV 3×500 MVA set as the eighth to tenth units at the Tumkur II pooling station. It also requires building the Tumkur II–Madhugiri 400 kV quad double circuit line and installing a ±300 MVAr static synchronous compensator at the pooling point. Switching systems for the ongoing 2×125 MVAr bus reactors will be included, along with two 220 kV line bays and four more 220 kV line bays for connecting renewable developers’ dedicated lines.

Bidders must provide an earnest money deposit of 145 million dollars and a performance bank guarantee of 362.5 million dollars. The last date for submitting bids is 23 January 2026.