Rs 24819 Crore Project: Maharatna Power Transmission he Letter of Intent (LOI) from the Potential Renewable Energy Zone in the Khavda area of Gujarat
Part A, with an estimated cost of Rs 24,819 crore (as per NCT estimations).
Power Grid Corporation of India Ltd has received the Letter of Intent (LoI) for a marquee project: Transmission System for the Evacuation of Power from the Potential Renewable Energy Zone in the Khavda area of Gujarat under Phase V (8 GW): Part A, with an estimated cost of Rs 24,819 crore (as per NCT estimations).
The project includes the establishment of 6,000 MW, ±800 kV HVDC terminals at KPS2 (Gujarat) and Nagpur (Maharashtra), a ±800 kV HVDC bipole line between KPS2 and Nagpur (1,200 km) traversing through Gujarat and Maharashtra, and the LILO of the Wardha–Raipur 765 kV D/C line at Nagpur in Maharashtra. It also includes the supply and installation of various associated equipment and interconnections at terminal stations. This is the first HVDC project bid out through TBCB and forms a key part of the scheme to set up a total of 30 GW of evacuation from the Khavda RE park and enhance the transfer of power to key load centres.
About the Company
Power Grid Corporation of India Limited is India's largest power transmission utility and a Maharatna company under the Ministry of Power. It is dominant in the service sector among Central Public Sector Enterprises (CPSEs), being ranked first in Profit After Tax and Net Worth. The company operates cross-border interconnections with a total capacity of 4,750 megawatts across neighbouring countries like Nepal, Bhutan, Bangladesh, and Myanmar, enhancing its international footprint. With a market capitalization of Rs 3.2 trillion, Power Grid boasts a robust infrastructure that includes 1,507 transmission lines covering 1,77,000 circuit kilometres, 278 substations, and a transformer capacity of 5,28,000 MVA, delivering a high system reliability rate of 99.80 per cent.
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The company continues strengthening its portfolio with a consolidated Capex of Rs 4,615 crores for the quarter. Power Grid also maintains a solid financial structure, with Gross Fixed Assets worth Rs 2,77,000 crores and a Debt/Equity ratio of 58:42. The company has emerged as the lowest bidder for multiple interstate transmission system projects and is pushing forward with cutting-edge innovations like its Substation Inspection Robot developed in collaboration with IIT-Kanpur. Additionally, Power Grid is committed to achieving its sustainability goals, with plans to source 50 per cent of its electricity from renewable energy by 2025 and reach net zero emissions by 2047.
The company have a market cap of Rs 2.95 lakh crore and has been maintaining a healthy dividend payout of 65 per cent with a good dividend yield of 3.52 per cent. On Friday, shares of Power Grid Corporation of India Ltd surged 0.61 per cent to an intraday high of Rs 321 per share from its previous closing of Rs 319.05 per share on BSE. The stock is up by 63.61 per cent from its 52-week low of Rs 196.20 per share and a whopping 130 per cent in 3 years. Investors should keep an eye on this power transmission company’s stock.
Disclaimer: The article is for informational purposes only and not investment advice.