Power Grid Corporation of India Limited (POWERGRID) has been declared the successful bidder for a major Inter-State Transmission System (ISTS) project designed to facilitate the large-scale evacuation of renewable energy from Rajasthan’s resource-rich zones to demand centers in Northern and Western India. The company received the formal Letter of Intent (LoI) on July 9, 2026. This infrastructure initiative is a critical component of India’s Renewable Energy Zone (REZ) Phase III strategy, providing the technical capacity necessary to support 20 GW of solar and wind power integration.
Project Framework and Implementation Model
The project was awarded through the Tariff-Based Competitive Bidding (TBCB) mechanism, a transparent process managed by the Bid Process Coordinator, REC Power Development and Consultancy Limited (RECPDCL). In securing this mandate, POWERGRID outperformed four other qualified commercial bidders: Adani Energy Solutions Limited, Ceigall India Limited, Dilip Buildcon Limited, and H G Infra Engineering Limited.
The development follows a Build, Own, Operate, and Transfer (BOOT) model. As a standard requirement of this framework, POWERGRID will acquire 100% equity in the Special Purpose Vehicle (SPV), Bhadla Ramgarh Power Transmission Limited. To guarantee project execution, the company is committed to providing a Contract Performance Guarantee of ₹435 Million. This win, alongside the recently secured Krishnagiri REZ project, solidifies POWERGRID’s dominant market share in the FY27 ISTS-TBCB segment, where it continues to lead the central sector in successful project acquisitions.
Technical Scope of Work
The technical mandate involves significant augmentation and bay extension works across three strategic nodes. Notably, the works at Bhadla-III represent a critical capacity expansion of an existing facility.
| Substation | Equipment / Capacity | Quantity / Details |
| Bhadla-III (Rajasthan) | 500 MVA, 400/220 kV Interconnecting Transformers (ICTs) | 5 Units (Designated as 6th to 10th ICTs; capacity expansion) |
| 220 kV Line Bays | 5 Bays | |
| 400 kV Line Bay | 1 Bay | |
| 400 kV Sectionalizer Bays | 2 Sets | |
| Ramgarh (Rajasthan) | 1,500 MVA, 765/400 kV ICTs | 2 Units (Designated as 3rd and 4th ICTs) |
| 500 MVA, 400/220 kV ICTs | 2 Units | |
| 220 kV Line Bays | 2 Bays | |
| 400 kV Line Bay | 1 Bay | |
| Kanpur (PG) (Uttar Pradesh) | 1,500 MVA, 765/400 kV ICT | 1 Unit (Designated as the 3rd ICT) |
Strategic Purpose: Strengthening the Inter-Regional Corridor
The primary objective of this project is the removal of transmission bottlenecks currently hindering the evacuation of 20 GW of solar and wind capacity from Rajasthan’s REZ Phase III. By upgrading the Bhadla-III and Ramgarh nodes, the system creates a high-voltage “Green Energy Highway” capable of transferring massive power loads across state lines.
The inclusion of the Kanpur (PG) substation in Uttar Pradesh is vital for inter-regional grid stability. Strengthening this node ensures that the 765 kV corridor can reliably deliver Rajasthan-generated green power to high-demand industrial and urban centers in Northern India without causing congestion or grid instability. This reinforcement is essential for maintaining the synchronicity of the national grid as variable renewable energy penetration increases.
Project Timeline and Key Milestones
The project is moving toward a rapid implementation phase to meet India’s 2030 renewable energy targets. The following milestones have been established:
- Tender Floated: March 26, 2026
- Technical Bids Opened / Bidders Qualified: June 23, 2026
- Letter of Intent (LoI) Issued: July 9, 2026
- Scheduled Commercial Operation Date (SCOD): January 20, 2029
Official Sources
- POWERGRID Corporate Filing – July 2026
- [Ministry of Power Gazette Notification – February 2026]: Allocated the inter-state transmission project for augmentation at Bhadla-III, Ramgarh PS, and Kanpur (PG), appointing RECPDCL as the Bid Process Coordinator.
- [RECPDCL Tender Invitation – March 2026]: Official request for bids to establish the Inter-State Transmission System (ISTS) to evacuate 20 GW of renewable power from Rajasthan, issued on 26 March 2026.
- [REC Limited Corporate Filing – May 2026]: Regulatory disclosure to the National Stock Exchange of India (NSE) and BSE Limited regarding the incorporation of the project-specific Special Purpose Vehicle, Bhadla Ramgarh Power Transmission Limited.
- [POWERGRID Corporate Filing – July 2026]: Official intimation to the stock exchanges under Regulation 30 of the SEBI (LODR) Regulations, confirming receipt of the Letter of Intent (LoI) on 9 July 2026.
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