Power Grid Corporation of India Ltd (PGCIL) has formally acquired “Khavda V-A Power Transmission Ltd” from bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) today, November 19, 2024.
This project, for which PGCIL was handed over the letter of intent on October 24, 2024, is significant on many counts. Firstly, estimated to cost around Rs.25,000 crore, this is by far the biggest ISTS scheme awarded under the tariff-based competitive bidding (TBCB) mechanism.
Secondly, this is the first transmission scheme involving HVDC technology to be awarded under the TBCB mode. Most of India’s existing HVDC links have been built by PGCIL under the regulated tariff mechanism (RTM) or nomination routes.
Tariffs
PGCIL is set to earn annual transmission charges (tariff) of Rs.40,828.67 million from this scheme. Commensurate with the project outlay, this is also the highest tariff associated with any ISTS-TBCB scheme, historically.
During the e-reverse auction, PGCIL was in the race alongside two other contenders – Adani Energy Solutions and Sterlite Power. While it is not yet known which of the two was the L2 bidder, the L2 bid (at Rs.41,033.59 million) was just 0.5 per cent higher than PGCIL’s winning bid. The L3 was relatively distant at Rs.54,721.91 million – 34 per cent more than the L1 quote.
Project Scope
This Khavda V-A project will straddle Maharashtra and Gujarat and will mainly involve the setting up of the following elements:
- A 6000 MW, ±800kV KPS2 (HVDC) [LCC] terminal station (4×1500 MW) in Gujarat
- A 6000 MW, ±800kV KPS2 (HVDC) [LCC] terminal station (4×1500 MW) in Maharashtra
- ±800kV HVDC Bipole line (Hexa lapwing) between KPS2 (HVDC) and Nagpur (HVDC) terminal stations (around 1,200 km)
By current timelines, Bipole-I is scheduled to commission in 48 months, followed by Bipole-2 in six months thereafter.
Two more HVDC schemes
There are two more ISTS-TBCB schemes involving HVDC technology, currently under bidding. These are housed under “Rajasthan Part I Power Transmission Ltd” and “KPS III HVDC Transmission Ltd.” While PGCIL is pitted against three other bidders – AESL, Sterlite Power and IndiGrid – for Rajasthan Part I, no information is yet available on the KPS III scheme.
Record year for PGCIL
FY25 is proving to be very eventful for PGCIL as far as the ISTS-TBCB space is concerned. As per estimates made by T&D India, the Central PSU has formally won 15 ISTS-TBCB schemes (including Khavda V-A discussed in this story) and has established clear majority with respect to number of schemes and estimated project cost.
Featured photograph shows formal handover of “Khavda V-A Power Transmission Ltd” by T.S.C. Bosh, CEO, RECPDCL to Pankaj Pandey, Executive Director, PGCIL, in the presence of senior officials of RECPDCL.
