Shares of Power Grid Corporation of India moved higher by 1.5% after the state-run transmission company secured a significant inter-state transmission system project valued at Rs 3,244 crore.

The project is aimed at facilitating power evacuation from Rajasthan and will involve the establishment of HVDC (high-voltage direct current) terminals along with a long-distance transmission line. Rajasthan hosts some of India's largest renewable energy zones, and building transmission capacity to carry solar and wind power from the state to demand centers elsewhere in the country has been a recurring driver of new inter-state transmission orders in recent years. HVDC technology is typically used for such long-distance, high-capacity links because it reduces transmission losses over extended distances compared with conventional AC lines.

Power Grid, India's largest power transmission utility and a central public sector enterprise under the Ministry of Power, owns and operates the bulk of the country's inter-state transmission network. The company's successful bid for the project reflects its strategic growth in India's transmission sector, where large projects are commonly awarded through tariff-based competitive bidding, and comes amid varying stock performance for the company in recent months.

Source: Economic Times Markets