Power Grid Corporation of India (POWERGRID) has acquired Davanagere Power Transmission (DPTL), a special purpose vehicle to establish a transmission system strengthening project at Davanagere, Karnataka, for the integration of renewable energy.

Davanagere Power Transmission was incorporated on June 26, 2025, by REC Power Development and Consultancy (RECPDCL). RECPDCL had floated the tender to establish an interstate transmission system in Davanagere and Chitradurga, Karnataka, to integrate renewable energy generation.

POWERGRID acquired 100% of the equity shares of DPTL, following its selection as the successful bidder under the tariff-based competitive bidding process

The entity was acquired for about ₹65.3 million (~$735,951.19), including 50,000 equity shares with a face value of ₹10 (~$0.11) each, along with the transfer of assets and liabilities of DPTL as of the acquisition date.

The project will be executed on a build, own, operate, and transfer basis.

The project involves augmentation works at the under-construction Davanagere substation, which will facilitate the integration of renewable energy into the grid.

All approvals for the transfer of the special purpose vehicle have been obtained; however, subsequent regulatory approvals are still required from the Central Electricity Regulatory Commission. These include the grant of a transmission license and the adoption of transmission charges for the project.

The Ministry of New and Renewable Energy has identified a renewable energy potential of 4 GW in Davanagere/ Chitradurga. The transmission system for integrating 2 GW of renewable energy is already under implementation. A connectivity of approximately 1,850 MW has been approved for the Davanagere pooling station, along with the transmission system.

Recently, POWERGRID won PFC Consulting’s auction to augment the existing interstate transmission system capacity by 4.5 GW and construct line bays at the Mandsaur substation in Madhya Pradesh.

In the same month, POWERGRID won another RECPDCL’s auction to develop an interstate transmission system to evacuate 3.7 GW of power from pumped storage projects in Sonbhadra district, in Uttar Pradesh, under a build, own, operate, and transfer model.