Power Grid Corporation of India has been declared the successful bidder for a significant transmission infrastructure project in Karnataka, marking another milestone in India's renewable energy expansion efforts. The company announced its selection under the Tariff Based Competitive Bidding (TBCB) mechanism for the Tumkur-II transmission system strengthening project.

Project Overview

The awarded project focuses on transmission system strengthening at Tumkur-II for integration of additional renewable energy potential. POWERGRID will execute this project on a Build, Own, Operate and Transfer (BOOT) basis, demonstrating the company's continued leadership in India's power transmission sector.

Technical Specifications

The project encompasses comprehensive transmission infrastructure development in Karnataka. The technical scope includes 400 kV double circuit transmission lines traversing across the state, along with critical augmentation works at the Tumkur-II Pooling Station.

Key technical components of the project include:

• 400 kV double circuit transmission line infrastructure
• Inter-connecting Transformers (ICTs) at Tumkur-II Pooling Station
• Line Bay augmentation works
• Integration facilities for renewable energy sources

Project Timeline and Documentation

POWERGRID received official confirmation of its successful bid through a Letter of Intent dated March 30, 2026, which was received by the company on April 1, 2026. This project represents part of India's broader strategy to strengthen transmission infrastructure for renewable energy integration.

The project aligns with India's commitment to expanding renewable energy capacity and strengthening the national power grid infrastructure. The Tumkur-II transmission system will play a crucial role in evacuating power from renewable energy projects in Karnataka, contributing to the state's growing clean energy portfolio.

Power Grid Corporation of India delivered exceptional performance in FY26, achieving a record capex of Rs 35,000 crore while significantly raising its capitalization targets. During a webinar held on March 23, 2026, Chairman and Managing Director Dr. R.K. Tyagi announced these milestone achievements and outlined the company's robust growth trajectory.

Record Financial Performance

The company exceeded its revised capex guidance of Rs 32,000 crore, achieving Rs 35,000 crore in actual capex for FY26. This represents a substantial increase from previous years, demonstrating Power Grid's enhanced execution capabilities.

The company has already achieved Rs 22,749 crore in capitalization through major project commissioning including Khetri Narela, Bhadla III Sikar II line, and Navsari Ahmedabad line. With the expected commissioning of Navasari-Phadge by March 28-29, 2026, total capitalization will exceed Rs 25,000 crore.

Infrastructure Additions and Operational Excellence

Power Grid commissioned significant transmission infrastructure during FY26, reinforcing its position as India's largest transmission utility.

The company operates 290 substations across 400 kV, 765 kV, and 800 kV HVDC systems, with total MVA capacity of 6,12,331 MVA out of the country's 14 lakh MVA capacity. Power Grid maintains the world's largest 765 kV transmission network and operates 11 HVDC projects across India.

Multi-Year Growth Guidance

Power Grid outlined ambitious multi-year capex and capitalization targets, reflecting strong project pipeline visibility and execution confidence.

The company has works-in-hand worth Rs 1,48,000 crore and Capital Work in Progress (CWIP) of over Rs 49,000 crore, providing strong execution visibility for the coming years.

Market Opportunity and Strategic Positioning

Power Grid identified substantial market opportunities driven by India's energy transition and infrastructure development needs. The Central Electricity Authority (CEA) guidelines project Rs 7.9 lakh crore transmission investment opportunity through 2035, supported by peak demand expectations of 459 GW and non-fossil fuel capacity of 786 GW.

Additional opportunities include:

• HVDC interconnections with neighboring countries: Rs 3-4 lakh crore
• Brahmaputra Basin projects: Rs 4 lakh crore
• Total transmission investment visibility: Rs 15 lakh crore

Assuming a 50% market share, Power Grid expects project visibility of Rs 6 lakh crore through 2035, translating to approximately Rs 60,000 crore annual capex requirements.

Operational Improvements and Strategic Initiatives

The company has addressed previous execution challenges through systematic improvements:

Right of Way (RoW) Solutions:

• Government revised compensation guidelines: 30% for rural, 45% for semi-urban, 60% for urban areas
• Dedicated RoW cells established in each region
• Enhanced corporate-level RoW management team

Skilled Manpower Development:

• 5 operational skill development centers training 50 technicians every 3 months
• 2 additional centers planned, targeting 1,400-1,500 trained technicians annually
• Formation of 100+ erection gangs per year

Supply Chain Enhancement:

• Equipment manufacturers expanding capacity beyond 4 lakh MVA annually
• Improved transformer and reactor supply chain management
• Government support for addressing procurement challenges

Corporate Restructuring Progress

Power Grid received MCA approval for merging 19 SPVs into 2 SPVs and is seeking approval for merging 28 wholly-owned subsidiaries into 2 entities. This restructuring will improve governance efficiency and administrative control while maintaining operational independence of transmission assets.