Power Grid Corporation of India Ltd (PGCIL) has formally acquired two more project SPVs related to ISTS-TBCB schemes, taking its total tally in FY25 so far to twenty.
On February 18, 2025, bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) formally transferred two project SPVs of ISTS schemes to PGCIL, the winning developer under the tariff-based competitive bidding (TBCB) modality. The two SPVs are Khavda V-B1B2 Power Transmission Ltd and Bidar Transco Ltd.
The SPVs were handed over by T.S.C. Bosh, CEO, RECPDCL to Pankaj Pandey, Executive Director, Power Grid Corporation of India Ltd in the presence of senior officials of RECPDCL, PGCIL and Central Transmission Utility of India Ltd. (see photograph)
Bidding process
Interestingly, for both the schemes, there were only two contenders in the final e-reverse auction stage. For Khavda V-B1B2, PGCIL, with a quote of Rs.698.58 million, got the better of Adani Energy Solutions Ltd. In the case of Bidar Transco, Megha Engineering & Infrastructures Ltd was the only other contender. PGCIL clinched this scheme with a winning bid of Rs.468.79 million. The bid represents the levelized annual transmission charge (tariff) that is fixed for the entire concession period.
Project scope
Khavda V-B1B2 envisages augmentation of two GIS pooling stations – KPS1 and KPS2 – both located at Khavda in Gujarat. The Bidar scheme entails transformation capacity augmentation of the Bidar pooling station in Karnataka. The two schemes will have a gestation period of 24 months, each, and are expected to together cost around Rs.750 crore, as per estimates by National Committee on Transmission (NCT).
PGCIL’s tally in FY25
According to a study by T&D India, the current fiscal year FY25 has seen the formal transfer of 36 ISTS-TBCB schemes, up to February 18, 2025. Of these, PGCIL enjoys a dominant share of 20 schemes. It is estimated that PGCIL will close FY25 with at least 25 ISTS-TBCB schemes given that it has received the letter of intent for at least three schemes for which the formal SPV transfer was pending as of February 18, 2025. Besides, PGCIL is amongst the qualified bidders for three other ISTS-TBCB schemes, the results of which are expected soon. This apart, an estimated 24 ISTS-TBCB schemes are currently under various stages of bidding. PGCIL’s market share in terms of tariff is estimated to be around 52 per cent in FY25 so far.
Also read: PGCIL wins Rs.3,500-crore transmission project in Karnataka
