Power Grid Corporation of India (POWERGRID) has successfully secured a major renewable energy transmission project in Karnataka, winning REC Power Development and Consultancy's (RECPDCL) auction to establish interstate transmission systems (ISTS) for integrating 3 GW of renewable energy capacity across two key locations in the state.

Project Overview and Timeline

The comprehensive project encompasses the integration of 250 MW of renewable energy at Davanagere and 2.75 GW at Bellary in Karnataka. POWERGRID must complete the entire project within 24 months from the scheduled commercial operation date, which is set at 24 months from the date of special purpose vehicle transfer.

Technical Scope at Davanagere Pooling Station

The project involves substantial infrastructure development at the Davanagere Pooling Station (PS). POWERGRID will augment the transformation capacity by installing 2×1500 MVA, 765/400 kV ICTs (6th & 7th). The technical specifications include:

• Two 765/400 kV, 1500 MVA ICTs
• Two 765 kV ICT bays
• Two 400 kV ICT bays
• One set of 400 kV bus sectionalizer
• Four 220 kV line bays and one 400 kV line bay for terminating dedicated transmission lines from renewable energy projects

Bellary Pooling Station Infrastructure

At the Bellary PS, POWERGRID will implement extensive augmentation work involving 400/220 kV, 6×500 MVA ICTs. The comprehensive scope includes:

Transmission Line Development

The project scope encompasses establishing the Bellary–Davanagere 2nd 400 kV (Quad) double-circuit line, which includes two 400 kV line bays at Bellary PS and two at Davanagere/Chitradurga PS. Additionally, five 220 kV line bays will be provided at Bellary PS for the termination of dedicated transmission lines from renewable energy developers.

Market Context and Competition

The tender, floated in September 2025, attracted significant industry participation. Apart from POWERGRID, other major players including Adani Energy Solutions, HG Infra Engineering, and Resonia qualified in the technical bid round, highlighting the competitive nature of India's renewable energy transmission sector.

Karnataka's Renewable Energy Potential

The Government of India has identified substantial renewable energy potential in Karnataka, totaling 17 GW across the state. Within this capacity, 4 GW has been identified at Davanagere and 1.5 GW at Bellary. Currently, transmission connectivity has been granted for approximately 3.9 GW at the Davanagere PS and 1.5 GW at the Bellary PS, indicating significant progress in the state's renewable energy infrastructure development.

POWERGRID's recent activities in Karnataka include receiving a letter of intent from RECPDCL in August 2025 to establish an ISTS for renewable energy integration, and acquiring Davanagere Power Transmission, a special-purpose vehicle, in September 2025 for transmission system strengthening projects.

Source: https://www.mercomindia.com/powergrid-wins-3-gw-renewable-energy-transmission-projects-in-karnataka

Power Grid Corporation of India has secured a major inter-state transmission project in Karnataka, driving investor confidence and pushing shares higher by 2%. The Maharatna public sector company announced through a stock exchange filing that it emerged as the successful bidder for this strategic renewable energy infrastructure project.

Project Details and Scope

The transmission project focuses on renewable energy evacuation, with the capacity to handle nearly 3 GW of green power from two key locations in Karnataka. The comprehensive scope includes:

The project will be developed under the BOOT model, where Power Grid will build and operate the transmission infrastructure before eventually transferring ownership. This approach allows the company to maintain operational control while ensuring long-term revenue generation from the asset.

Market Performance and Stock Movement

Following the project announcement, Power Grid's shares reached a day's high of ₹264.20 per share, representing a 2% increase from the previous day's closing price of ₹259.50. The company maintains a substantial market capitalisation of ₹2,44,420.00 crores, reflecting its dominant position in India's power transmission sector.

Over the past five years, the stock has demonstrated strong performance with returns of 129%, significantly outperforming the NIFTY 50's return of 80% during the same period.

Financial Performance Overview

Power Grid's recent financial results present a mixed picture of revenue growth coupled with profit pressures:

The company reported revenue growth of 2% year-over-year and 2.50% quarter-over-quarter, indicating steady operational expansion. However, net profit declined by 6% year-over-year, though the quarterly decline was more modest at 2%.

Order Book and Business Pipeline

As of Q2 FY26, Power Grid maintains a robust order book worth ₹1,52,287.00 crores, distributed across various business segments:

The substantial order book, with the majority secured through competitive bidding, demonstrates the company's strong market position and execution capabilities.

Infrastructure and Operational Scale

Power Grid operates one of the world's largest power transmission networks, maintaining critical infrastructure that ensures reliable electricity flow across India. The company's extensive network includes:

• 1,553 transmission lines covering over 181,054 circuit kilometres
• 287 substations with total capacity of 5,82,516 MVA
• Inter-regional transmission capacity of approximately 101 GW (84% of India's total)
• Network availability of 99.83%

Beyond traditional transmission services, the company has expanded into telecom and consultancy services while playing a crucial role in renewable energy integration and national grid stability through its load dispatch centres.