Power Grid Corporation Wins Transmission Project with ₹3,244 Crore Annual Charges
Key Takeaways
- •Power Grid Corporation of India won a transmission project with annual charges of ₹3,244 crore, according to CNBC-TV18.
- •The company's shares closed at ₹267.50 on the BSE, up ₹2.65 or 1.00% on the day.
- •Power Grid is a state-owned utility operating most of India's interstate transmission network.
- •The project was awarded through tariff-based competitive bidding, with costs recovered via fixed annual transmission charges.
- •India's transmission sector is expanding as renewable energy growth requires new interstate lines from generation sites to demand centres.
Power Grid Corporation of India Ltd has won a transmission project carrying annual charges of ₹3,244 crore, according to a report by CNBC-TV18.
Shares of Power Grid Corporation of India Ltd ended at ₹267.50 on the Bombay Stock Exchange (BSE), up ₹2.65, or 1.00%, on the day.
Power Grid Corporation of India Ltd is a state-owned electric utility and one of the world's largest power transmission companies, operating the bulk of India's interstate transmission network. The company regularly participates in competitive bidding for transmission projects awarded through the tariff-based competitive bidding process, under which winners recoup their investment through fixed annual transmission charges over the contract period.
India's transmission sector has seen sustained expansion as the country adds renewable energy capacity, which requires new interstate lines to move power from generation sites to demand centres. Transmission projects of this scale typically strengthen Power Grid's regulated asset base, from which it earns regulated returns over the contract period. The award also reflects the continued flow of new transmission tenders from national planning bodies as grid infrastructure build-out proceeds.
Source: CNBC-TV18
