POWERGRID Wins Major Gujarat Transmission Project to Integrate 6,500 MW Renewable Power
POWERGRID has set a capital expenditure target of around ₹37,000 crore for FY27 and is targeting capitalisation of around ₹30,000 crore during the financial year
Maharatna PSU Power Grid Corporation of India Limited (POWERGRID) has emerged as the successful bidder under the Tariff-Based Competitive Bidding (TBCB) process for a major inter-state transmission project in Gujarat.
The company received the Letter of Intent (LoI) on August 21, 2026, marking another significant addition to its transmission project portfolio.
The project is aimed at evacuating renewable power generated from the Jam Khambhaliya Renewable Energy Zone (REZ) Phase-II and Jamnagar Phase-I and integrating it with the national power system.
POWERGRID will develop the project under the Build, Own, Operate and Transfer (BOOT) model. The tariff discovered through the competitive bidding process is ₹822.91 crore per annum.
6,500 MW Renewable Power Integration
The transmission system will facilitate the integration and evacuation of renewable power from two major clusters:
| Renewable Energy Cluster | Capacity |
|---|---|
| Jam Khambhaliya REZ – Phase II | 5,500 MW |
| Jamnagar – Phase I | 1,000 MW |
| Total | 6,500 MW |
The project will therefore play an important role in connecting up to 6,500 MW of renewable generation to the wider power grid.
India is rapidly expanding its solar and wind power capacity. However, generation capacity alone is not sufficient to ensure reliable utilisation of renewable energy. Large-scale transmission infrastructure is required to evacuate power from renewable energy zones and transport it to demand centres.
The POWERGRID project is designed to address this requirement and strengthen the transmission infrastructure supporting Gujarat’s growing renewable energy ecosystem.
New GIS Substation to Come Up at Kalyanpur
A major component of the project will be the construction of a new Gas Insulated Substation (GIS) at Kalyanpur in Gujarat.
The project will also involve strengthening existing transmission infrastructure through:
- ICT augmentation at substations;
- Bay extension works;
- Strengthening of the transmission network;
- Construction of 765 kV transmission lines passing through Gujarat; and
- Associated transmission system development required for renewable power evacuation.
Thus, the project is not limited to the construction of a single transmission line. It involves the development and augmentation of an integrated transmission system to support large-scale renewable energy evacuation.
Another Boost to POWERGRID’s Project Pipeline
For POWERGRID, the latest TBCB win is significant because the company has a substantial pipeline of transmission projects. As of June 30, 2026, the company had around ₹1.75 lakh crore of projects in hand.
In addition, its bidding pipeline stood at more than ₹1.19 lakh crore.
The broader long-term opportunity in India’s transmission sector is even larger. According to company estimates, the sector offers a long-term opportunity of more than ₹15 lakh crore, driven by rising electricity demand, renewable energy expansion, hydropower development and the creation of large inter-regional transmission networks.
₹37,000 Crore Capex Target for FY27
POWERGRID has set a capital expenditure target of around ₹37,000 crore for FY27 and is targeting capitalisation of around ₹30,000 crore during the financial year.
The continued addition of large transmission projects is expected to support the company’s capital expenditure and asset-creation cycle.
With India’s electricity demand rising and renewable generation capacity expanding, transmission infrastructure is likely to remain one of the key areas of investment in the power sector.
Renewable Energy Expansion to Drive Transmission Demand
India’s power sector is undergoing a major structural transformation, with solar and wind capacity increasing rapidly. As renewable generation becomes a larger part of the country’s electricity mix, the need for high-capacity transmission corridors will also increase.
For POWERGRID, this represents a significant long-term opportunity. The company is positioned to participate in this expansion through both TBCB projects and other transmission projects awarded through different mechanisms.
The Gujarat project is particularly important because it combines renewable energy evacuation with the development of high-voltage transmission infrastructure.
A Strategic Win for POWERGRID
The ₹822.91 crore annual tariff, integration of 6,500 MW of renewable power, development of a new GIS substation and construction of 765 kV transmission infrastructure make the Gujarat project an important addition to POWERGRID’s portfolio.
Combined with its existing ₹1.75 lakh crore work-in-hand order book and more than ₹1.19 lakh crore bidding pipeline, the project further strengthens the company’s visibility in India’s expanding transmission infrastructure market.
As the country continues to add renewable generation capacity, the demand for large-scale transmission systems is expected to rise. For POWERGRID, the latest TBCB award reinforces its role in building the infrastructure required to connect India’s growing renewable energy capacity with the national grid.
