Power Grid Wins Key Rajasthan Transmission Project via Competitive Bidding

13 Aug 2024 , 02:20 PM

State-owned Power Grid Corporation of India announced on Monday that it has secured a significant transmission project in Rajasthan through a tariff-based competitive bidding process. On August 12, 2024, the company received a Letter of Intent (LoI) for acquiring a Project Special Purpose Vehicle (SPV) named Bhadla-III Power Transmission Ltd.

This SPV will be responsible for establishing the transmission system associated with the “Additional Transmission System for Evacuation of Power from Bhadla-III PS,” which is part of the Rajasthan Renewable Energy Zone (REZ) Phase-III Scheme, aimed at supporting a 20 GW power generation capacity.

Power Grid Corporation emerged as the successful bidder for this project, outperforming several private sector competitors in the competitive bidding process. The project will involve the augmentation of transformation capacity at the existing Bhadla-III substation in Rajasthan, a critical component of the state’s renewable energy infrastructure.

At the time of writing, shares of Power Grid is trading at ₹336.35 which is a 1.41% dip than the previous close. Power Grid stock has gained a total of 83% in the last one year, and almost 41% since the beginning of the year.

Power Grid Corporation of India Limited, a central public sector undertaking under the Ministry of Power, Government of India, plays a vital role in transmitting bulk power across India. Headquartered in Gurugram, the company is responsible for transmitting approximately 50% of the total power generated in the country, making it a key player in India’s power sector.