POWERGRID acquires Bellary Davanagere transmission SPV

Power Grid Corporation of India Limited (POWERGRID) has completed the acquisition of Bellary Davanagere Power Transmission Limited, a project-specific special purpose vehicle (SPV) formed for “Transmission system strengthening for integration of additional RE potential at Davanagere (0.25 GW) and Bellary (2.75 GW).” 

The transaction was finalised on February 12, 2026, after POWERGRID emerged as the successful bidder in a tariff-based competitive bidding (TBCB) process conducted by REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited.

REC Limited separately informed the stock exchanges that, with effect from February 12, 2026, the SPV has ceased to be a subsidiary of RECPDCL or REC Limited.

The project, estimated at Rs 1,111 crore, is intended to facilitate renewable energy integration in Karnataka from Davanagere (0.25 GW) and Bellary (2.75 GW). It involves construction of an approximately 80-km 400 kV quad double circuit transmission line between the two locations and augmentation works at both pooling stations.

At Davanagere, the scope includes installation of two 765/400 kV, 1,500 MVA interconnecting transformers (ICTs), four 220 kV line bays, one 400 kV line bay, and one 400 kV bus sectionaliser. At Bellary, the project provides for six 400/220 kV, 500 MVA ICTs, along with multiple 400 kV and 220 kV bays, bus sectionalisers, and bus coupler systems.

The project will be implemented on a build, own, operate, and transfer (BOOT) basis, with a completion period of 24 months from the date of SPV transfer.

Bellary Davanagere Power Transmission Limited was incorporated on September 25, 2025. It has not commenced commercial operations and has reported no turnover. Following the acquisition, the SPV will be required to obtain a transmission licence and secure adoption of transmission charges from the Central Electricity Regulatory Commission (CERC).