T&D

Ceigall India Secures LoI for Key Part of 14 GW Gujarat Transmission Network; Project Valued at INR 5,300 Crore

September 9, 2026 By Gaurav Nathani 4 min read
0:00 / 04:10

Infrastructure EPC firm Ceigall India (CIL) has been awarded a Letter of Intent (LoI) for a critical segment of the Inter-State Transmission System (ISTS) designed to evacuate 14 GW of renewable energy from Gujarat’s primary generation hubs. The award, designated as the “Part-B” project, was finalized following a tariff-based competitive bidding (TBCB) process overseen by PFC Consulting. REC Power Development and Consultancy (RECPDCL) served as the Bid Process Coordinator (BPC) for the auction. The infrastructure is specifically engineered to provide a high-voltage link between resource-rich zones in Gujarat and major demand centers in Maharashtra and South Gujarat.

Project Capacity and Regional Breakdown

The transmission network is designed to support a planned generation capacity of 14 GW, originating from three distinct renewable energy zones in Gujarat. The regional capacity breakdown is as follows:

  • Lakadia (Phase-II): 7.5 GW
  • Jam Khambhaliya (Phase-II): 5.5 GW
  • Jamnagar (Phase-I): 1 GW

The core objective of this system is to alleviate transmission bottlenecks by dispersing electricity from these high-generation areas toward load centers in the western region, ensuring grid stability as India expands its renewable capacity.

Commercial and Contractual Framework

Ceigall India secured the “Part-B” award under the TBCB framework, which requires the developer to finance, construct, and operate the assets over a long-term period. Financial and operational specifics include:

  • Project Value: Approximately INR 5,300 crore, inclusive of GST.
  • Bidding Model: Tariff-based competitive bidding (TBCB).
  • Annual Transmission Charges: INR 608.67 crore per year throughout the operational phase.
  • Project Timeline: A 36-month construction phase followed by a 35-year operational and maintenance period.

The INR 5,300 crore investment applies exclusively to the infrastructure within the Part-B scope and does not represent the total expenditure for the entire 14 GW evacuation architecture.

Technical Infrastructure and Tender Background

The project follows a wider tender initiated in March 2026 aimed at creating a robust ISTS for the western region. While the broader network includes the 765/400 kV Alephata substation infrastructure, Ceigall India’s specific Part-B award focuses on the Nashik node and its associated transmission links.

Primary technical assets to be developed under this contract include:

  • Substation Infrastructure: A new 765/400 kV Air Insulated Substation (AIS) located at Nashik in Maharashtra. This facility will include three 1,500 MVA transformers, associated transformer bays, line bays, and bus reactors.
  • Transmission Lines: Approximately 320 km of high-voltage lines. This comprises a 765 kV double-circuit line spanning roughly 240 km between South Olpad (Gujarat) and the new Nashik substation, and a 400 kV double-circuit line spanning approximately 80 km between Nashik and Pimpalgaon.
  • Associated Equipment: Installation of protection and control systems, bus reactors, AIS equipment, and communication infrastructure, including advanced optical-fiber systems.

The issuance of the LoI to Ceigall India on September 3, 2026, marks the formal commencement of the project’s execution phase. According to the contractual terms, the developer is required to complete construction and commission the transmission system within 36 months. Following the successful commissioning of the assets, Ceigall India will enter the 35-year operational period defined under the transmission service arrangement. This project stands as a major component of the national grid’s expansion to facilitate the integration of utility-scale renewable energy.

Official Sources & References

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