POWERGRID acquires SPV for two transmission projects
Author: PPD Team Date: October 22, 2025
Power Grid Corporation of India Limited (POWERGRID) has expanded its interstate transmission portfolio by acquiring two special purpose vehicles (SPVs) through the tariff-based competitive bidding (TBCB) process.
POWERGRID acquired Vindhyachal Varanasi Transmission Ltd (VVTL) from PFC Consulting Ltd on October 16, 2025. The SPV, incorporated on April 17, 2025, was set up for a transmission scheme to reduce the loading on the existing 765 kV Vindhyachal–Varanasi double-circuit line. The project involves building a 765 kV substation in Prayagraj and associated transmission lines across Uttar Pradesh and Madhya Pradesh. The acquisition, valued at about Rs 19.84 crore, includes 10,000 equity shares at face value. The scheme has a tariff of Rs 3,231.30 million per year, an estimated project cost of Rs 2,368 crore, and a gestation period of 24 months. Competing bidders included Resonia Ltd, AESL, DRAIPL, KCC Buildcon, IndiGrid, and HG Infra.
On October 17, 2025, POWERGRID completed the acquisition of SR WR Power Transmission Ltd (SRWRPTL) from REC Power Development and Consultancy Ltd. The SPV was incorporated on July 1, 2025, and is responsible for establishing a 765 kV interregional link between the Southern Region (SR) and Western Region (WR) grids. The project spans Karnataka and Maharashtra and aims to enhance interregional transfer capability. The acquisition, worth approximately Rs 11.29 crore, includes 50,000 equity shares at face value. The project carries a tariff of Rs 1,047.59 million per year, an estimated cost of Rs 1,007 crore, and a gestation period of 24 months. Other qualified bidders were Resonia, AESL, Torrent Power, IndiGrid, and Montecarlo.
POWERGRID will now seek transmission license and tariff adoption approvals from the Central Electricity Regulatory Commission (CERC).
With these additions, POWERGRID’s total interstate transmission system (ISTS) TBCB wins in FY26 have risen to five, making it the leading developer by both number of awards and share of aggregate annual transmission charges.
POWERGRID’s five ISTS-TBCB acquisitions in FY26 include Powergrid Mahan Rewa Transmission Ltd, Davanagere Power Transmission Ltd, Mandsaur I RE Transmission Ltd, Vindhyachal Varanasi Transmission Ltd, and SR WR Power Transmission Ltd.