Record tariff set for Khavda IV-C ISTS project

Sterlite Power has secured the Khavda IV-C interstate transmission system (ISTS) project with an annual tariff of Rs 13.15 billion, the highest ever for an ISTS scheme under the tariff-based competitive bidding (TBCB) process. Competing bids from Power Grid Corporation of India Ltd (PGCIL) and Adani Energy Solutions Ltd (AESL) were close, with the L2 bid just 0.25% higher than Sterlite’s winning bid.

The project, now estimated to cost over Rs 120 billion, includes a 258 km, 765kV double-circuit transmission line from South Olpad to Boisar-II, a new 6,000 MVA GIS substation at Boisar-II, and additional components across Gujarat and Maharashtra. Completion is expected within 24 months.

This tariff surpasses previous records, with future projects like Khavda V-A expected to set even higher tariffs, given its estimated cost of Rs 250 billion.