Power Grid Corporation of India Ltd (PGCIL) has been the most successful bidder in interstate transmission system (ISTS) schemes awarded under the TBCB route in the first nine months of 2023, according to a special study by T&D India.
The study, based on official documents and T&D India research, indicates that PGCIL has won 11 out of the 18 ISTS schemes awarded under the tariff-based competitive bidding (TBCB) mechanism in the first nine months (January 1 to September 30) of 2023.
The date of “winning” the scheme has been taken as the date of which the project SPV has been formally acquired from the respective bid process coordinator (BPC) by the selected bidder. The BPCs involved are REC Power Development & Consultancy Ltd (RECPDCL) and PFC Consulting Ltd (PFCCL).
While PGCIL won 11 schemes, the remaining seven were distributed amongst Sterlite Power, Adani Energy Solutions and Apraava Energy – each winning two schemes, and Megha Engineering & Infrastructures Ltd (MEIL) with one.
It is interesting to note that Adani Energy Solutions subsequently acquired the project awarded to MEIL. This takes AESL’s count to three.
The study also indicates that PGCIL maintained its dominance with respect to project value and not just number of schemes. Based on initial project cost estimates made by National Committee on Transmission (NCT), the total value of the ISTS schemes awarded in the period under study works out to around Rs.23,300 crore. Of this, PGCIL’s projects accounted for 60 per cent. Adani Energy Solutions had the next highest share of around 19 per cent (including the acquisition from MEIL), followed closely by Sterlite Power with approximately 17 per cent.
The 11 schemes included four large schemes – each with an estimated project outlay of over Rs.2,000 crore. While three of these went PGCIL’s way, one – Beawar Transmission – was clinched by Sterlite Power.
Transmission schemes related to renewable energy evacuation dominated the ISTS-TBCB market. A total of 12 such schemes were awarded in the January-September period of 2023, mainly dealing with RE-based evacuation in Gujarat (Khavda region) and Rajasthan.
Apraava Energy made its debut in the greenfield interstate power transmission development space by winning its first set of projects – Fatehgarh III Transmission Ltd and Fatehgarh IV Transmission Ltd. Prior to this, Apraava Energy’s power transmission portfolio comprised assets acquired from original developers.
Project Completions
During the January-September period of 2023, a total of four interstate transmission schemes turned commercially operational. Adani Energy Solutions commissioned two projects, housed under Warora Kurnool Transmission Ltd (WKTL) and Karur Transmission Ltd. The WKTL project was significant as it was a long-delayed and stranded project. It was originally awarded to Essel Infraprojects Ltd in July 2016 but acquired by Adani Group in around March 2021, after Essel Group faced insolvency-related issues.
Sterlite Power commissioned an important interstate project – Lakadia Vadodara Transmission Project Ltd – that involved among other elements, a 670-ckm double-circuit 765kV line in Gujarat. PGCIL commissioned a relatively small RE-based evacuation scheme housed under “Powergrid Bikaner Transmission System Ltd” (formerly, Bikaner-II Bhiwadi Transco Ltd) in Rajasthan.
Winning streak continues
PGCIL’s winning streak appears to have continued in October 2023 as well, with the Central PSU winning two ISTS projects awarded in the month – Ramgarh II Transmission Ltd and Beawar Dausa Transmission Ltd. According to information available with T&D India, these were the only ISTS-TBCB projects transferred to winning developers in October 2023.
Also read: PGCIL Commissions Component Of ERSS Scheme
Note: This study has taken into account interstate transmission system (ISTS) schemes awarded under the TBCB route. Specifically, the study excludes intrastate transmission schemes, and ISTS schemes awarded under the regulated tariff mechanism (RTM) mode.
