IndiGrid secures LoI for two REC greenfield transmission projects

Both ventures, with a combined estimated capital expenditure exceeding INR 1,000 crores, are slated for completion within approximately 24 months each.

IndiGrid, India’s inaugural publicly listed power sector infrastructure investment trust (InvIT), has declared that it has received Letters of Intent (“LOI”) from REC Power Development and Consultancy Limited for the construction of two greenfield inter-state transmission projects. These projects were secured through the Tariff Based Competitive Bidding (TBCB) mechanism and will be developed on a Build, Own, Operate, and Transfer (BOOT) basis for a tenure of 35 years. Both ventures, with a combined estimated capital expenditure exceeding INR 1,000 crores, are slated for completion within approximately 24 months each.
The initial project, featuring annual transmission charges of approximately INR 530 million post-commissioning, focuses on the evacuation of power from the Dhule 2GW renewable energy zone. Its scope encompasses the construction of a 400/220 kV pooling station boasting a 4×500 MVA capacity, alongside a 400 kV D/C line extending approximately 70 km.

The second project, with post-commissioning annual transmission charges of around INR 625 million, pertains to the establishment of the Western Region Expansion Scheme XXXIII (WRES-XXXIII) Part-C. This initiative involves the construction of two substations in Madhya Pradesh: a 765/400 kV substation boasting a 2×1500 MVA capacity and a 400/220 kV substation with a 2×500 MVA capacity. Additionally, a LILO single circuit 765 kV D/C line extending approximately 18 km is included in the project. These substations are designed to meet the electricity demand of the proposed green hydrogen plant in the nearby vicinity, cater to loads in Chhatarpur, Tikamgarh, and Jatara areas, and facilitate the interconnection of the 630 MW NTPC Barethi Solar Plant.

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Commenting on the acquisition, Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid, said,” India’s transmission sector is witnessing tremendous growth to cater to the increased energy demand and higher evacuation needs from existing and upcoming renewable generation centers.

Over the years, IndiGrid has developed its capability for the development of greenfield projects. Greenfield projects provide us with an opportunity to drive growth and pipeline while ensuring asset quality and reliability. We have created a robust balance sheet and headroom for growth with recent capital raise.”