H.G. Infra Engineering Ltd entered a Battery Energy Storage System (BESS) Purchase Agreement with Gujarat Urja Vikas Nigam Ltd (GUVNL) for 250 MW/500 MWh capacity under Phase IV tender. Backed by Viability Gap Funding, the project enhances grid stability with 18-month execution timeline.
H.G. Infra Engineering, through its wholly-owned subsidiary, signed the Battery Energy Storage Purchase Agreement (BESPA) with GUVNL for developing 250 MW/500 MWh standalone BESS in Gujarat. This marks the company's third such project, part of GUVNL's 500 MW/1,000 MWh Phase IV initiative supported by central Viability Gap Funding (VGF).
The agreement follows LOI receipt and GERC tariff approval via competitive bidding, targeting renewable integration and round-the-clock power. Core project cost ~₹973 Cr (plus GST), with equity commitment ₹295 Cr spread over FY26-27. Commissioning targeted by December 2026, generating ~₹225 Cr annual revenue post-completion.
This diversification bolsters HG Infra's renewables portfolio (12% of ₹10,392 Cr order book), complementing highways (68%) and railways (20%). Q4 FY25 earnings highlighted BESS as key growth driver amid 47 GW national capacity projection by FY32.
Key highlights
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Capacity: 250 MW/500 MWh standalone BESS.
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Timeline: 18 months; commissioning Dec 2026.
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Financials: Core cost ₹973 Cr; annual revenue ~₹225 Cr.
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Strategic: Third BESS project; VGF-backed for grid stability.
Sources: PV Magazine India; Energetica India; Angel One; Saur Energy; HG Infra earnings transcript