Power Grid Corporation of India Ltd (PGCIL) has recorded major success in the ISTS-TBCB market during FY24.
According to an investor presentation filed on stock exchanges, PGCIL has won as many as six interstate transmission system (ISTS) schemes under the tariff-based competitive bidding (TBCB) mode in the third quarter (Q3: October to December) of FY24 alone.
The six schemes will entail aggregate investment of Rs.20,479 crore (as estimated by National Committee on Transmission) and will collectively yield annual tariff of around Rs.1,636 crore.
The ISTS-TBCB wins of PGCIL during Q3FY24 are:
- Vataman Transmission Ltd
- Koppal II Gadag II Transmission Ltd
- Bikaner III Neemrana Transmission Ltd
- Neemrana II Bareily Transmission Ltd
- Sikar Khetri Transmission Ltd
- Bidar Transmission Ltd
In the first half of FY24 (April to September), PGCIL had won four ISTS-TBCB schemes, taking the cumulative wins in 9MFY24 (April to December) to ten. These ten projects are expected to see investment of Rs.26,872 crore and result in annual tariff of Rs.2,340 crore.
According to estimates made by T&D India, FY24 (April to March) is likely to be the most successful year for PGCIL, in terms of clinching ISTS-TBCB projects. CEA estimates suggest that in FY23, a total of only eight ISTS-TBCB projects were awarded out of which PGCIL had won three.
Projects commissioned
In terms of commissioning, the investor presentation said that during Q3FY24, PGCIL commissioned an ISTS-TBCB scheme housed under “Powergrid Ramgarh Transmission Ltd”. The project involved RE evacuation from Rajasthan solar energy zones and was officially termed as, “Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II – Part A.” [The project SPV at the time of incorporation was known as “Ramgarh New Transmission Ltd.”]
The major elements of this project included: 400kV double-circuit line from Ramgarh-II to Fatehgarh-II substations [44 km]; 400kV double-circuit line from Ramgarh-II to Jaisalmer-II substations [50 km]; 400/200kV Ramgarh-II substation (to be known as Fatehgarh-III).
ISTS-TBCB in FY24
According to estimates made by T&D India, in FY24 so far, 21 ISTS-TBCB projects were awarded. FY24 therefore will see the highest number of ISTS-TBCB awarded in any financial year so far. While PGCIL was most successful with 10 projects (as discussed above), Sterlite Power and Apraava Energy won three each. Adani Energy Solutions clinched two (including one acquired from the original developer Megha Engineering & Infrastructures). India Grid Trust (IndiGrid) was the successful bidder in two projects. Tata Power won one project — Bikaner III Neemrana II Transmission Ltd — that interestingly marked the company’s entry in the greenfield ISTS-TBCB space.
Also read: PGCIL Targets Rs.10,000-Plus Crore Capex In FY24
Featured photograph is for representation only.
