Power Grid Corporation of India Limited (POWERGRID), India’s largest power transmission company and a key Maharatna PSU, has been declared the successful bidder under the Tariff-Based Competitive Bidding (TBCB) process for a major interstate transmission project. The project is designed to strengthen the transmission infrastructure between northern and western regions, specifically to relieve the loading on the critical 765 kV Vindhyachal-Varanasi double-circuit line. Awarded on a Build, Own, Operate and Transfer (BOOT) basis, this initiative marks a significant step toward enhancing grid stability and supporting India’s growing power and renewable energy demands.
Key Points
Project Overview and Scope
POWERGRID received the Letter of Intent (LoI) for the project on September 16, 2025, positioning it as the successful bidder for an Inter-State Transmission System (ISTS) project valued at ₹14,864 crore.
The project, known as the “Inter-regional (NR-WR) Transmission System strengthening,” aims to reduce the electrical load on the existing 765 kV Vindhyachal-Varanasi double-circuit line.
Key infrastructure components include the establishment of a new 765 kV substation at Prayagraj, Uttar Pradesh, and construction of 765 kV double-circuit transmission lines stretching across Uttar Pradesh and Madhya Pradesh.
Strategic Importance
This transmission upgrade is critical for enhancing the reliability and capacity of power flow between the northern and western regions of India, areas that are power surplus and shortage zones, respectively.
The project supports national efforts to modernize the grid, improve energy efficiency, and integrate a larger share of renewable energy by strengthening the transmission backbone.
It alleviates bottlenecks in the electrical network, facilitating smooth power evacuation and reducing transmission losses.
Execution and Financial Details
The project will follow the BOOT model, with POWERGRID responsible for construction, operation, and maintenance before eventually transferring the asset.
The completion of this project is expected to significantly improve grid stability, augment power availability, and increase access to clean energy across these strategic regions.
The timeline for execution is expected to be aligned with India’s broader power infrastructure upgrade goals timed within the next few years.
POWERGRID’s Market Position and Growth
POWERGRID’s success in securing this high-value bid reinstates its leadership in the power transmission sector and highlights its competitive edge in executing large-scale projects under the TBCB regime.
The company’s stock has shown strong performance and investor confidence driven by its consistent wins in competitive bids and expanding project portfolio.
This project forms part of POWERGRID's plans to support India’s energy transition and meet future demand through robust transmission infrastructure.
Conclusion
POWERGRID’s latest achievement as a successful bidder under the TBCB process for the ₹14,864 crore transmission strengthening project is a testament to its technical expertise and strategic vision. The upcoming infrastructure upgrades will play a pivotal role in ensuring a reliable power supply, supporting renewable energy integration, and boosting the region’s economic growth. As India’s power sector evolves, POWERGRID remains firmly at the forefront, driving critical developments in the national grid and facilitating a sustainable energy future.
Sources: DSIJ, Elite Wealth, Angel One, Business Standard, ScanX Trade
