EnerGrid wins 2 ISTS schemes in FY27; ₹5,800 crore capex

What EnerGrid won and why it matters

EnerGrid, an investment platform co-promoted by IndiGrid Infrastructure Trust (IndiGrid), has won two inter-state transmission system (ISTS) schemes under the tariff-based competitive bidding (TBCB) route in Q1 FY27 (April to June). The two schemes are located in Himachal Pradesh and are meant to evacuate hydropower from projects including Shongtong Karcham, Tidong, Sunni Dam, and Luhri Stage-I. The combined estimated capital expenditure for developing the two projects is around ₹5,800 crore. IndiGrid has said the two projects will be developed on a BOOT (build, own, operate, transfer) basis.

The wins take EnerGrid’s tally of ISTS-TBCB wins to three, including Morena I SEZ Transmission Ltd, which was acquired in February 2026. Sector updates also point to a broader structural change in how IndiGrid intends to participate in competitive bids going forward. It is learnt that IndiGrid will not directly bid for power transmission and battery energy storage system (BESS) projects and will participate through EnerGrid instead. For IndiGrid unitholders and sector observers, this shift clarifies the platform strategy around bidding and subsequent ownership of operating assets.

The two ISTS schemes: Shongtong-Tidong and Sunni-Luhri

One of the schemes EnerGrid won is the Shongtong–Tidong Transmission Scheme, formally described as the “Transmission system for evacuation of power from Shongton Karcham HEP (450 MW) and Tidong HEP (150 MW).” The project SPV for this scheme is Shongtong Power Transmission Ltd. The scope includes 450 ckm of lines and a 400/220 kV, 630 MVA substation. The reported winning tariff for Shongtong is ₹542.63 crore per year, and the estimated project cost is ₹2,286 crore.

The second scheme is the “Transmission system for evacuation of power from Sunni Dam HEP and Luhri Stage-I HEP.” The project SPV is Luhri Power Transmission Ltd. One sector update described the transmission infrastructure as around 104 ckm of lines and 1,050 MVA of transformation capacity. A separate project transfer update added that the scheme in Himachal Pradesh envisages establishment of a 400/220 kV GIS Nange pooling station and a 400 kV double-circuit line of 50 km from Nange pooling station to Koldam, along with other associated works. The Luhri scheme was reported to cost ₹839.55 crore.

Ownership and bidding structure: IndiGrid shifts to the EnerGrid route

Alongside the project wins, the reporting points to a structural shift in IndiGrid’s bidding approach. It is learnt that IndiGrid will not directly participate in future TBCB bids for power transmission and BESS projects. Instead, it will participate through EnerGrid.

EnerGrid is officially Enerica Regrid Infra Pvt Ltd. It is co-promoted by IndiGrid, British International Investment (BII), and the Norwegian Climate Investment Fund (Norfund). One update said the three partners have committed a total investment of $100 million through equity and debt, while another sector note put the committed amount at $100 million through equity and debt. The same reporting also stated that IndiGrid is expected to have no equity stake in EnerGrid, but will support the platform through subscription to debt instruments.

A key feature of the structure, as reported, is IndiGrid’s expected acquisition of 100 percent stake in all projects of EnerGrid one year after their commissioning. That design effectively separates the competitive bidding phase from the eventual ownership phase, while keeping a stated pathway for assets to move to IndiGrid after commissioning.

SPV transfers and key dates flagged by REC and sector updates

REC Limited, through its wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL), completed the transfer of two project-specific SPVs after a TBCB process on July 29, 2026. Separately, sector updates indicate PowerGrid and EnerGrid formally acquired the project SPVs of ISTS schemes on July 29, 2026, aligning with the transfer date mentioned in REC’s announcement.

In a later, scheme-specific update, RECPDCL formally transferred the project SPV of the Luhri interstate scheme to Terralight Solar Energy Tinwari Pvt Ltd, a subsidiary of EnerGrid. The SPV “Luhri Power Transmission Ltd” was handed over to Terralight Solar Energy Tinwari Pvt Ltd on August 21, 2026. The same update stated that Terralight Solar Energy Tinwari Pvt Ltd quoted an annual transmission charge (tariff) of ₹144.35 crore.

What the combined pipeline looks like after the third win

With the two Q1 FY27 wins, EnerGrid’s ISTS-TBCB wins have reached three, including Morena I SEZ Transmission Ltd acquired in February 2026. The reporting said the three projects together envisage five transmission lines aggregating 739 ckm and three substations with total transformation capacity of 7,180 MVA, spread across Madhya Pradesh and Himachal Pradesh. This provides a quantified snapshot of the platform’s early pipeline.

The two new schemes add to this pipeline and also anchor EnerGrid’s operating model in Himachal Pradesh’s hydropower evacuation requirements. The scope details shared in the updates suggest a mix of high-voltage line construction and substation capacity additions, aligned to specific generating projects and their commissioning timelines.

Commissioning timeline linked to upstream hydro projects

For the Luhri transmission scheme, the update said the project is scheduled for commissioning by October 15, 2029. It also noted that this matches the commissioning schedule of the Sunni Dam HEP and the Luhri Stage-I HEP being developed by Central PSU SJVNL Ltd. This is relevant because transmission readiness is typically coordinated with generation commissioning in evacuation schemes.

The Shongtong-related project details in the sector note focus on lines and substation scope, tariff, and estimated cost, and also indicate that the SPV has been transferred. Together, these disclosures help investors track what has moved from bid award to formal ownership of the project vehicle.

Key facts table: projects, costs, tariffs, and scope

IndiGrid unit price reference and related acquisition note

A market snapshot in the provided data showed IndiGrid at ₹173, up 0.44%. Separately, an announcement line stated: “5 Sep - IndiGrid signs agreement to acquire Shongtong Power Transmission for up to ₹5,315.80 crore, subject to approvals.” This is consistent with the broader narrative that IndiGrid’s eventual ownership can follow after platform-led bidding and project execution steps, though the updates presented focus on the bidding platform and SPV transfers.

Why the development is being tracked by the sector

The main significance flagged in the reporting is the change in bidding architecture. Moving bids to a co-promoted platform, while keeping a stated route for IndiGrid to acquire projects one year after commissioning, alters how the market interprets future awards, funding, and asset ownership within the IndiGrid ecosystem. It also clarifies that EnerGrid is intended to be the competitive bidding vehicle for transmission and BESS opportunities under TBCB.

At the project level, the numbers disclosed around capex, tariffs, line lengths, and transformation capacity help set benchmarks for similar evacuation-linked ISTS packages. The milestones around SPV transfers from RECPDCL provide dated confirmation of progress beyond the bid stage.

Conclusion

EnerGrid’s two Q1 FY27 ISTS-TBCB wins in Himachal Pradesh bring the platform’s total to three projects and involve an estimated combined capex of ₹5,800 crore. The reported SPV transfer milestones in July and August 2026, and the stated BOOT development basis, map out the early execution pathway. The sector’s focus now is on subsequent commissioning timelines, including the October 15, 2029 target cited for the Luhri scheme, and how the platform-to-IndiGrid ownership transition plays out after commissioning as described in the updates.