PFCCL issues RFP for Krishnagiri REZ Phase I transmission project

PFC Consulting Limited (PFCCL), a wholly owned subsidiary of Power Finance Corporation Limited (PFC), has issued a Request for Proposal (RFP) to appoint a Transmission Service Provider (TSP) for the “Transmission System for integration of Krishnagiri REZ Phase-I.”

The selected TSP will establish, own, operate, and transfer the Transmission System for integration of Krishnagiri REZ Phase I under a Build Own Operate Transfer (BOOT) model. The scope includes setting up new 765/400/220 kV pooling stations at Krishnagiri and Sagar, as well as the construction of 765 kV and 400 kV double-circuit transmission lines. Additionally, it involves the installation of associated substation equipment and STATCOM systems. The project is scheduled to be completed within 30 months from the effective date.

The TSP will be selected through a tariff based competitive bidding (TBCB) process in line with central government guidelines. The bidding will follow a single stage, two envelope system comprising technical and financial bids, to be conducted electronically through a platform developed by MSTC Limited. The bidder quoting the lowest annual transmission charges for a period of 35 years will be selected. The bid submission deadline is 17 March 2026.

The NCT approved two interstate transmission schemes for renewable energy evacuation in Andhra Pradesh under the TBCB framework in August 2025: Kurnool V REZ Phase I and Ananthapuram III REZ Phase I. In September 2025, the NCT noted that the proposed connectivity could be met through other ongoing schemes along with co-located Battery Energy Storage System (BESS) installations.

In November 2025, the NCT decided against delaying the Krishnagiri Pooling Station, earlier referred to as Kurnool V Pooling Station, as it is integral to Kurnool V REZ Phase I. The present Krishnagiri REZ Phase I scheme is a modified version of Kurnool V REZ Phase I, while Ananthapuram III REZ Phase I has been put on hold. The tentative project cost has been estimated at Rs 7,627 crore.

The scheme forms part of India’s broader plan to achieve 500 GW of non-fossil fuel capacity by 2030. It is aimed at addressing near-term evacuation requirements from the Kurnool region, which has been identified as having a renewable energy potential of around 23 GW from solar and wind sources. The project has been recommended for implementation through the TBCB route by the National Committee on Transmission (NCT).

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