Power Grid Corporation of India Limited (POWERGRID) has fully commissioned the inter-state transmission system (ISTS) built to integrate renewable energy from the Koppal and Gadag regions of north Karnataka. In a disclosure to the stock exchanges under Regulation 30 of the SEBI Listing Regulations, the Maharatna transmission utility stated that the “Transmission Scheme for integration of Renewable Energy Zone (Phase-II) in Koppal-II (Phase-A & B) and Gadag-II (Phase-A) in Karnataka” has been commissioned with effect from 23 October 2026, with the notification for its Date of Commercial Operation (DOCO) received on the same day.
The project was originally executed through POWERGRID Koppal Gadag Transmission Limited (PKGTL), a wholly owned subsidiary. Pursuant to a Ministry of Corporate Affairs order dated 27 January 2026, PKGTL was amalgamated with POWERGRID Khavda II-C Transmission Limited with effect from 1 March 2026.
Scope of the Scheme
The scheme was implemented in two parts. Phase-A covers the establishment of the Koppal-II pooling station with 765/400 kV, 2×1,500 MVA and 400/220 kV, 2×500 MVA transformation capacity, and a new 400/220 kV, 2×500 MVA pooling station at Gadag-II. The two stations are linked by a 400 kV (Quad Moose) double-circuit line, while a 765 kV double-circuit line connects Koppal-II to the Narendra (New) substation. Phase-A also includes 765 kV and 400 kV bus reactors at Koppal-II, 400 kV bus reactors at Gadag-II and line reactors on the Narendra line.
Phase-B adds a 765 kV double-circuit line from Koppal-II to Raichur, along with an augmentation of 2×1,500 MVA (765/400 kV) and 2×500 MVA (400/220 kV) transformers at Koppal-II. As per project status reports of the Central Transmission Utility of India Limited (CTUIL), the three lines measure about 236 circuit km (Koppal-II–Narendra New), 293 circuit km (Koppal-II–Raichur) and 77 circuit km (Gadag-II–Koppal-II).
Role in Karnataka’s Renewable Energy Zones
According to CTUIL’s submission recorded by the Central Electricity Regulatory Commission (CERC), the Ministry of New and Renewable Energy has identified 17 GW of renewable energy potential in Karnataka as part of the national target of 500 GW of non-fossil capacity by 2030. The Koppal-II and Gadag-II systems are planned to serve 4 GW of potential each, and the present scheme enables immediate integration and evacuation of 2 GW at Koppal-II and 1 GW at Gadag-II.
The system was planned on the basis of declared potential rather than as associated transmission for specific projects, but developer interest built up quickly. CTUIL informed CERC in April 2024 that connectivity of 1,457.6 MW had been granted at Koppal-II and about 1,983 MW at Gadag-II under this scheme, to developers including Tata Power Renewable Energy, Scatec, Torrent and Greenko group companies. A further 2,716.9 MW at Koppal-II and 3,293 MW at Gadag-II had been granted or agreed, linked to additional network augmentation.
Bidding and Approvals
The National Committee on Transmission recommended the scheme for implementation through the tariff-based competitive bidding (TBCB) route at its meeting on 7 November 2022, and the Ministry of Power appointed PFC Consulting Limited as the Bid Process Coordinator in February 2023. Four bidders, POWERGRID, Sterlite Grid 38, Tata Power and Adani Energy Solutions, took part. Following the e-reverse auction on 1 December 2023, POWERGRID emerged as the lowest bidder with annual transmission charges of ₹3,153.46 million.
POWERGRID received the Letter of Intent on 5 December 2023 and acquired the project SPV on 26 December 2023 to develop the system on a build, own, operate and transfer (BOOT) basis. On the same date, it furnished a contract performance guarantee of ₹126 crore and signed the Transmission Service Agreement with CTUIL. The scheduled completion was 24 months from the SPV transfer, that is, December 2025.
Commissioning Timeline
CTUIL’s December 2025 status report placed the anticipated completion of the main elements in June 2026. Records of the Central Electricity Authority (CEA) show that the Koppal-II–Raichur 765 kV double-circuit line was commissioned in July 2026, while the two circuits of the Gadag-II–Koppal-II 400 kV line were commissioned in July and August 2026. POWERGRID’s earnings update for the June 2026 quarter also listed both lines among the major elements completed after June. With the DOCO effective from 23 October 2026, the entire scheme is now in commercial operation.
Further Augmentation at the Pooling Stations
As connectivity applications exceeded the capacity of the original scheme, a separate ISTS project, “System Strengthening at Koppal-II and Gadag-II for integration of RE generation projects”, was taken up through competitive bidding. POWERGRID acquired its SPV, Gadag II and Koppal II Transmission Limited, on 16 January 2025. This project comprises an additional 400 kV line between Koppal-II and Gadag-II and augmentation of transformation capacity at both pooling stations. CTUIL data shows its elements being completed progressively between July 2026 and June 2027.
Outlook
With full commissioning, the Koppal-II and Gadag-II pooling stations are now connected to the national grid through the Narendra (New) and Raichur substations, giving solar, wind and hybrid projects in the zone a dedicated evacuation path. The rate at which connected renewable capacity comes online, together with timely completion of the augmentation works, will determine how quickly the remaining potential of the two zones is brought into the grid.
Official Sources
- POWERGRID – BSE Disclosure: Commissioning of Koppal-II/Gadag-II REZ (Phase-II) Transmission Scheme (23 October 2026): https://www.bseindia.com/xml-data/corpfiling/AttachLive/70386697-ce01-4168-b286-1683391bbe63.pdf
- CERC – Order in Petition No. 52/TL/2024 (Transmission licence, 2 July 2024): https://cercind.gov.in/2024/orders/52-TL-2024-I.pdf
- POWERGRID – BSE Disclosure: Acquisition of Koppal II Gadag II Transmission Limited (26 December 2023): https://bseindia.com/xml-data/corpfiling/AttachHis/0dc31198-64e6-4347-ba47-aa181e56785f.pdf
- CTUIL – Status of ISTS TBCB Projects, Southern Region (December 2025): https://www.ctuil.in/uploads/assets/176794787715Status-of%20ISTS-TBCB%20projects-Dec%2725_SR.pdf
- CEA – Transmission Lines Commissioned during July 2026: https://cea.nic.in/wp-content/uploads/transmission/2026/07/TL_Commissioned_during_July_2026.pdf
- CEA – Transmission Lines Commissioned during August 2026: https://cea.nic.in/wp-content/uploads/transmission/2026/08/TL_Commissioned_during_August_2026.pdf
- POWERGRID – Earnings Update, Quarter ended 30 June 2026 (NSE, 7 August 2026): https://nsearchives.nseindia.com/corporate/POWERGRID1_07082026104951_NSEBSE.pdf
- POWERGRID – BSE Disclosure: Acquisition of Gadag II and Koppal II Transmission Limited (16 January 2025): https://bseindia.com/xml-data/corpfiling/AttachHis/6fdc5e1c-3d53-46d0-85ae-a3f3efdc449e.pdf
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