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Power Grid Corporation of India (POWERGRID) has been declared the successful bidder under TBCB

ICICIdirect Research 04 Sep 2026 DISCLAIMER

News: Power Grid Corporation of India (POWERGRID) has been declared the successful bidder under TBCB for establishing the Inter-State Transmission System for integration of 7,500MW renewable energy projects from Lakadia REZ in Gujarat – Phase II on a BOOT basis, at quoted annual transmission charges of ₹1,152.49 crore. POWERGRID received the LoI on September 3, 2026. The project comprises a new 765/400kV Lakadia-II substation, 765kV transmission lines across Gujarat with associated equipment and bays, and installation and commissioning of a synchronous condenser. The project has an estimated development cost of ₹8,238 crore, revised from the NCT’s original estimate of ₹7,506 crore following a change in configuration, including the addition of a ~140km Lakadia-II–Halvad 765kV double-circuit line.

View: The ₹8,238 crore project strengthens POWERGRID’s transmission order pipeline and provides long-term, annuity-like revenue visibility under the BOOT model, with the company recovering its investment through ₹1,152.49 crore annual transmission charges over the project tenure. The project will facilitate evacuation of 7.5GW of renewable power from Lakadia REZ and highlights the significant transmission capex opportunity linked to renewable integration.

Impact: Positive

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