Bid process coordinator PFC Consulting Ltd (PFCCL) has incorporated a wholly-owned subsidiary that will act as a special purpose vehicle (SPV) for development of an ISTS scheme in Karnataka.
Incorporated on October 21, 2024, the newly-formed SPV is called “Gadag II and Koppal II Transmission Ltd” and will house an ISTS scheme termed as “System strengthening at Koppal-II and Gadag-II for integration of RE generation projects.”
PFCCL has already initiated the bidding process for this scheme and by current timelines, the technical bids are scheduled to be opened on October 28, 2024. Bidder selection is being done under the tariff-based competitive bidding (TBCB) mechanism.
This newly-formed SPV will undertake preliminary project activities like preparation of project report, initiating land acquisition, initiating the forest clearance process, etc.
This project SPV will be subsequently handed over to the successful bidder selected under the TBCB modality.
Project details
Estimated to cost Rs.1,354 crore (as estimated by National Committee on Transmission), the Gadag-II Koppal-II project is envisaged for full commissioning by June 2027. This ISTS scheme seeks to augment capacity at the Koppal-II and Gadag-II pooling stations in Karnataka, with a view to meeting growing requests for connectivity from RE developers.
It may be noted that the Koppal-II and Gadag-II pooling stations are currently under development through another ISTS-TBCB scheme being developed by “Powergrid Koppal Gadag Transmission Ltd,” a wholly-owned subsidiary of PGCIL. This scheme, with an envisaged outlay of Rs.2,564 crore, is currently under execution and is scheduled to complete by December 2025.
Under the ISTS scheme under discussion, housed under “Gadag II and Koppal II Transmission Ltd,” the Koppal-II PS will be augmented by 3×1500 MVA, 765/400kV ICTs and 5×500 MVA, 400/220kV ICTs. Similarly Gadag-II PS will be enhanced by 7×500 MVA, 400/220kV ICTs. Among other elements, this project will also develop a 400kV double-circuit (quad) line connecting the Koppal-II and Gadag-II pooling stations. This will be the second such line between the two pooling stations.
More SPVs to be incorporated
One can expect more such SPVs to be incorporated by PFCCL in the near future. According to estimates made by T&D India, there are at least nine ISTS-TBCB schemes, currently under bidding and having PFCCL as the bid process coordinator, where the SPV incorporation is yet pending.
In the case of the only other BPC, REC Power Development & Consultancy Ltd (RECPDCL), there are seven such schemes. It may be recalled that the board of REC Ltd, in October 1, 2024, approved the incorporation of eight wholly-owned subsidiaries that would act as project special purpose vehicles for as many ISTS-TBCB schemes.
Also read: PFCCL transfers four SPVs to winning bidders – PGCIL, Adani Energy
Featured photograph is for representation only
