Fiscal year FY24 saw frenzied action in the ISTS-TBCB power transmission space with a record number of schemes getting awarded.
According to a special study by T&D India, based on official statistics, a record number of 23 interstate transmission system (ISTS) projects were awarded during FY24 – the highest ever in any financial year since the TBCB culture in ISTS power transmission development kicked in way back in 2011.
The 23 ISTS-TBCB schemes awarded in FY24 went to as many as nine developers. Once again, this is the highest number of successful bidders associated with the ISTS-TBCB space in any fiscal year so far.
It may be noted that in this study an ISTS-TBCB scheme is considered “awarded” only when the formal transfer of the project SPV – from the bid process coordinator to the successful bidder – takes place.
Here are some highlights of the ISTS-TBCB phenomenon in FY24
- As many as 23 ISTS-TBCB schemes were awarded in FY24 as against 18 in FY23. Nearly all the schemes awarded in FY24 related to renewable energy (RE) evacuation. ISTS-TBCB schemes for transmission from Rajasthan-based RE projects alone numbered 12 in FY24.
- Power Grid Corporation of India Ltd (PGCIL) was the most successful bidder in FY24 winning 10 of the 23 schemes awarded. However, its market share in terms of number of schemes fell to around 43 per cent in FY24 from 67 per cent in FY23 when it had landed 12 of the 18 ISTS-TBCB schemes awarded.
- Sterlite Power and Apraava Energy shared the second spot in terms of number of ISTS-TBCB schemes won in FY24, with three apiece.
- Of the remaining seven schemes in FY24 two went to India Grid Trust. Adani Energy Solutions, Tata Power, GR Infraprojects, Megha Engineering & Infrastructures and Torrent Power landed one each.
- It may be noted that the ISTS-TBCB scheme won by Megha Engineering – KPS1 Transmission Ltd – was subsequently acquired by Adani Energy Solutions.
- Three developers – Tata Power, Torrent Power and Apraava Energy – made their debut in the greenfield ISTS-TBCB space. [It may be mentioned that before this Tata Power and Apraava Energy had a portfolio of ISTS projects through acquisitions but not through bidding.] In FY23, two developers – Megha Engineering & Infrastructures Ltd (MEIL) and GR Infraprojects – had debuted in the ISTS-TBCB market.
- ReNew Transmission was the only developer that scored a win in FY23 but could not do so in FY24.
- Of the 23 ISTS-TBCB schemes awarded in FY24, PFC Consulting Ltd was associated as bid process coordinator (BPC) for 15 schemes with REC Power Development & Consultancy Ltd (RECPDCL) handling the mandate for eight.
Schemes commissioned in FY24
In FY24, a total of seven ISTS-TBCB schemes were commissioned as against six in FY23. Adani Energy Solutions commissioned the highest number of ISTS-TBCB schemes in FY24— at three — followed by PGCIL with two. India Grid Trust and Renew Transmission Ventures commissioned one scheme each.
ISTS-TBCB schemes commissioned in FY24 were: Khavda Bhuj Transmission, Warora Kurnool Transmission and Karur Transmission (all Adani Energy Solutions); Powergrid Bikaner Transmission System and Powergrid Ramgarh Transmission (both PGCIL); Koppal Narendra Transmission (Renew Transmission Ventures), and Kallam Transmission (India Grid Trust).
Bidding pipeline
According to estimates made by T&D India, as of March 31, 2024, there was a pipeline of around 40 ISTS-TBCB schemes that were under various stages of bidding.
The March 2023 boost
It is worth mentioning here that out of the 18 ISTS-TBCB schemes awarded in FY23, as many as 10 were handed over in March 2023 alone – the last month of FY23. On March 21, 2023, a total of six schemes were formally transferred – all to PGCIL. Further, on March 28, 2023, another four schemes were awarded – three to PGCIL and one to Adani Energy Solutions. Thus, for PGCIL, of the total 12 ISTS-TBCB schemes won in FY23, as many as nine came in the last month of the year alone.
Also read: ISTS-TBCB Schemes: PFCCL Transfers Three SPVs To Winning Developers
(Note: This study takes into account only “ISTS-TBCB” schemes, which means interstate transmission system schemes awarded under the tariff-based competitive bidding route. ISTS schemes awarded under the regulated tariff mechanism (RTM) mode and intrastate transmission system (InSTS) schemes, even if awarded under the TBCB route, have not been considered.)
