Power Grid Corporation of India (POWERGRID) has received the letter of intent (LoI) for establishing a 765 kV interstate transmission system project connecting the southern and eastern grids.

The tender for the project, “Inter-Regional Strengthening between Southern Region (SR) Grid and Eastern Region (ER) Grid,” was floated in June 2025.

The transmission system will be developed on a build, own, operate, and transfer basis.

The project involves the establishment of a 765 kV interstate transmission system in Angul, Odisha, and Srikakulam, Andhra Pradesh, along with associated reactive power compensation infrastructure.

In addition to the transmission lines, the scope of work includes associated line bays and reactor works at both ends of the corridor to strengthen inter-regional power transfer capability between the southern and eastern region grids. The infrastructure is intended to enhance grid reliability and facilitate large-scale power transfer across regions.

The scope of the project includes the construction of approximately 275 km of 765 kV double-circuit transmission line between the Angul and Srikakulam substations, installation of 240 MVAr switchable line reactors at both ends of the line, and a 1 × 330 MVAr, 765 kV bus reactor at the Angul substation.

POWERGRID is also responsible for the entire lifecycle of the project, including survey and detailed project report preparation, arranging financing and equity investment, obtaining all statutory and regulatory approvals, engineering, procurement, construction, testing, and commissioning, as well as operation and maintenance for a concession period of 35 years from the commercial operation date (COD).

At the end of the concession period, the assets will be transferred to the Central Transmission Utility or a government-nominated agency at zero cost. The scheduled COD for all major transmission elements is 30 months from the effective date.

Recently, POWERGRID commissioned the 765 kV double-circuit Khetri–Narela interstate transmission system, part of the larger 8.1 GW transmission infrastructure to evacuate solar power from Rajasthan to Delhi and Northern India. The transmission system is a crucial link in Rajasthan’s renewable evacuation network.

In November this year, POWERGRID invited bids to select a consortium partner to set up 1,000 MW/2,000 MWh of standalone battery energy storage systems across seven substations in Andhra Pradesh.