India Grid Trust (IndiGrid) announced that it has partnered with British International Investment (BII), Norwegian Climate Investment Fund and Techno Electric & Engineering Company Ltd, to collaboratively undertake development of IndiGrid’s greenfield interstate transmission system (ISTS) projects.
Role of partners
Under this partnership, BII and Norfund will invest in IndiGrid’s three ISTS projects won last year and currently under-construction — Ishanagar Power Transmission Ltd (IPTL), Dhule Power Transmission Ltd (DPTL), and Kallam Transco Ltd (KTCO). Techno will invest minority capital and will also be responsible for the complete execution of the projects on a lump-sum turnkey basis.
Norfund manages Norwegian Climate Investment Fund, and its investment in IndiGrid will be done through KNI India AS, Norfund’s joint venture with KLP that is Norway’s largest pension company. BII is a UK-based development finance institution.
IndiGrid’s current projects
During FY24, IndiGrid operationalized its first greenfield ISTS project, Kallam Transmission Ltd, and won five additional projects, across ISTS and battery energy storage system (BESS), with a tentative capex outlay of around Rs.2,000 crore, be deployed over the next 12-24 months.
These projects are expected to support evacuation of renewable energy to ~6 GW in the states of Madhya-Pradesh and Maharashtra. Additionally, Techno will co-develop the IPTL and DPTL projects.
IndiGrid will be acquiring entire stake in these projects once they are operational and revenue generating.
Impacting India’s energy transition
Commenting on the development, Harsh Shah, Chief Executive Officer and Whole Time Director, IndiGrid, said, “We are delighted to partner with marquee development financial institutions like BII and Norfund for our current under-construction projects to realize a shared vision of making an impact in the energy transition journey. Our partnership earlier with IFC and now with BII and Norfund is a testament to our strong commitment to aligning with leading ESG standards in our businesses. We also look to deepen our engagement with Techno Electric, a leading EPC developer with an established track record, to partner across an extended portfolio of projects.”
Also read: IndiGrid wins ISTS-TBCB scheme “Kallam Transco Ltd”
Featured photograph (source IndiGrid) relates to IndiGrid’s ISTS project housed under Kallam Transmission Ltd.
