Power infrastructure investment trust IndiGrid has received letters of intent from REC Power Development and Consultancy (RECPDCL) for the construction of two greenfield interstate transmission projects secured through the tariff-based competitive bidding mechanism.

The projects will be developed on a build, own, operate, and transfer (BOOT) basis, spanning a tenure of 35 years.

With an estimated capital expenditure exceeding ₹10 billion (~$120 million), the projects are expected to enhance IndiGrid’s presence in the dynamic power sector. The construction timeline for each project is approximately 24 months.

The first project, the Dhule 2 GW renewable energy zone evacuation project, involves annual transmission charges post-commissioning amounting to ₹530 million (~$6.3 million).

It encompasses the construction of a 400/220 kV pooling station with a robust capacity of 4×500 MVA, complemented by the installation of a 400 kV D/C line extending over a distance of 70 km.

The second project under the initiative, named the Western Region Expansion Program XXXIII (WRES-XXXIII) Part-C, is projected to incur annual transmission charges post-commissioning totaling ₹625 million (~$7.5 million).

This endeavor involves the construction of two substations in Madhya Pradesh, consisting of a 765/400 kV substation boasting a capacity of 2×1,500 MVA, alongside a 400/220 kV substation with a capacity of 2×500 MVA.

Additionally, the project entails the installation of a Loop In Loop Out (single circuit 765 kV D/C line covering a distance of approximately 18 km. The overarching goal of this project is to address the electricity demand of the proposed green hydrogen plant, serve loads in Chhatarpur, Tikamgarh & Jatara areas, and facilitate the interconnection of the 630 MW NTPC Barethi solar project.

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.”

Recently, IndiGrid announced that the International Finance Corporation has invested ₹11.4 billion (~$138.74 million) in its listed non-convertible debentures. The company intends to use this debt to fund its refinancing needs for the fiscal year 2024.

In the first half of the fiscal year, IndiGrid acquired Virescent Renewable Energy Trust for ₹40 billion ($479.71 million). VRET is a renewable energy InvIT with 16 operational solar projects and a cumulative capacity of 538 MW.