The Power Grid Corporation of India (POWERGRID) has emerged as the successful bidder for the execution of the Inter-State Transmission System (ISTS) Project to evacuate power from Renewable Energy Zones (REZ) in Rajasthan for 20 GW, Phase-III Part C1.

The Letter of Intent (LoI) was formally received on September 11, 2023. The scheduled commercial operation date (COD) for the overall project is 18 months from the effective date.

The project is to be undertaken on a Build, Own, Operate, and Transfer (BOOT) basis, encompassing several critical components, including establishing a novel 765/400 kV substation with the integration of STATCOM technology in Ramgarh.

It also involves the construction of a 765 kV double-circuit transmission line and the extension of associated bays at existing substations in Rajasthan.

The other qualified bidders for the project were Adani Energy Solutions, Sterlite Grid 22, Megha Engineering & Infrastructures, Apraava Energy Private, Tata Power Company and a consortium of Indigrid 1 (54% ownership), Indigrid 2 (22% ownership), and R S Infraprojects (24% ownership).

POWERGRID is required to apply for a transmission license from the regulatory commission per the provisions of the Electricity Act and the associated regulations.

It will also be responsible for establishing, operating, and maintaining the project, which includes conducting survey activities, formulating detailed project reports, arranging finances, managing the project, securing necessary consents, clearances, and permits (such as way leave, environmental, forest, civil aviation, railway, road, river, canal, power crossing), handling land compensation, and overseeing the design, engineering, procurement of equipment and materials, construction, erection, testing, and commissioning.

POWERGRID will also have to ensure that the locations of substations, switching stations, HVDC terminals, or inverter stations are within a 1 km radius of the locations.

In March, POWERGRID approved raising unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds for ₹9 billion (~$109.73 million) through private placement.

In the same month, POWERGRID won three ISTS projects in the tariff-based competitive bidding process. The company won the first project for a transmission system to evacuate power from solar energy zones in Rajasthan (8.1 GW) under Phase-II Part E on a build, own, operate, and maintain basis.