Power Grid Corporation of India Limited (POWERGRID) has formally concluded the acquisition of a 100% equity stake in Kakinada I Transmission Limited (KITL), a strategic move aimed at de-risking the infrastructure landscape for India’s emerging green energy corridors. Acquired from PFC Consulting Limited (PFCCL), acting as the Bid Process Coordinator (BPC), the transaction was finalized for approximately ₹20.50 crore. This Inter-State Transmission System (ISTS) project is fundamental to establishing the high-capacity power evacuation framework required for proposed Green Hydrogen and Green Ammonia projects in the Kakinada region of Andhra Pradesh.
Project Scope and Technical Infrastructure
The “Phase-I” development necessitates engineering-grade precision to support industrial-scale renewable electricity loads. The technical scope includes:
- Establishment of a new 765/400 kV Gas-Insulated Substation (GIS) situated across the villages of China Jaggampeta and Dharmavaram.
- Installation of a ± 300 MVAr STATCOM with 2×125 MVAr MSC to ensure grid stability.
- 765 kV transmission line works, including the Line-In-Line-Out (LILO) of the existing 765 kV Srikakulam-Vemagiri double circuit (D/C) line, spanning approximately 20 km.
- Integration of 3×1500 MVA transformers and a 240 MVAr bus reactor.
Operational Model and Regulatory Framework
The project is structured on a Build, Own, Operate, and Transfer (BOOT) basis. POWERGRID was selected as the Transmission Service Provider (TSP) through the Tariff Based Competitive Bidding (TBCB) route. Notably, this represents POWERGRID’s second formal TBCB acquisition in FY27, following its takeover of the Tumkur II RE Transmission project.
Strategic Significance: Supporting the Kakinada Green Energy Valley
This infrastructure is the linchpin for the “Kakinada Green Hydrogen Valley,” which anticipates a cumulative renewable energy demand of 6GW by 2030. The system is specifically vital for AM Green Ammonia, which has requested grid access for 700MW by July 2026 and an additional 1,300MW by January 2027. Analytical review suggests a temporal gap, as the project’s 24-month gestation period targets a June 2028 completion, trailing the initial industrial demand phases.
Financial Analysis and Execution Timeline
The project involves a total estimated capital expenditure of ₹1,618 crore. Under the TBCB framework, POWERGRID secured the contract with a winning annual transmission tariff of ₹1,799.74 million. The company will earn these charges over a 35-year concession period once commercial operations commence. The SPV transfer effectively initiates the 24-month execution clock for the June 2028 target.
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