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Power Grid Wins Bids for 3 Interstate Transmission Projects Under BOOT Model

Synopsis:

Power Grid Corporation of India Ltd has secured three interstate transmission projects under the BOOT model. The projects will enhance power transmission in Rajasthan, Gujarat, Andhra Pradesh, and Karnataka. Despite this expansion, the company reported a 4.1% YoY decline in Q3 net profit.


Power Grid Corporation of India Ltd has emerged as the successful bidder for three inter-state transmission projects under the tariff-based competitive bidding (TBCB) process. The projects will be developed under the build, own, operate, and transfer (BOOT) model, further strengthening India’s power transmission network. The company received the letter of intent (LoI) on March 3, 2025.

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Updated - 07 March 2025
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Key Takeaways:

  • Projects Secured: Three interstate transmission system projects

  • Development Model: BOOT (Build, Own, Operate, and Transfer)

  • Project Locations: Rajasthan, Gujarat, Andhra Pradesh, Karnataka

  • Transmission Capacity: 4 GW (Rajasthan REZ Phase-5) and 4.5 GW (Kurnool-IV REZ Phase-I)

  • Project Scope: Substation augmentation, new pooling stations, and 765kV transmission lines

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Project Details and Scope

Power Grid’s first project is the transmission system for Rajasthan REZ Phase-5 (Part-1: 4 GW), which involves augmentation at the under-construction Sirohi substation and the establishment of 765kV double-circuit transmission lines across Rajasthan and Madhya Pradesh.

The second project focuses on transformation capacity enhancement at Banaskantha (Raghanesda) PS (GIS) in Gujarat, involving ICT augmentation to improve power distribution efficiency.

The third project is the transmission system for Kurnool-IV REZ Phase-I (4.5 GW), which includes setting up a new 765/400/220kV pooling substation in Kurnool, augmenting the C’peta substation, and laying transmission lines across Andhra Pradesh and Karnataka.

Project

Scope of Work

States Covered

Rajasthan REZ Phase-5 (4 GW)

Augmentation of Sirohi substation, 765kV lines

Rajasthan, MP

Banaskantha (Gujarat) Transformation

ICT augmentation at Banaskantha PS (GIS)

Gujarat

Kurnool-IV REZ Phase-I (4.5 GW)

New 765/400/220kV pooling station, transmission lines

Andhra Pradesh, Karnataka

Financial Performance and Share Price Movement

Despite securing these large-scale projects, Power Grid Corporation of India Ltd reported a 4.1% YoY decline in net profit for Q3 FY2025 at ₹3,861.6 crore. Revenue from operations dipped 3% YoY to ₹11,233 crore. At the operating level, EBITDA fell 6.9% YoY to ₹9,537.9 crore.

Following the project announcement, Power Grid Corporation of India Ltd share price closed at ₹254.05, reflecting a 0.59% increase on the BSE. Investors are monitoring how these projects impact the company’s long-term revenue growth.

Power Grid Corporation of India Ltd’s successful bid for these three transmission projects under the BOOT model highlights its expanding role in strengthening India's power infrastructure. As renewable energy integration continues to rise, these projects will play a key role in improving transmission capacity across multiple states. The company’s financial performance remains under scrutiny, but its expansion initiatives indicate sustained growth in the sector.

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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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