POWERGRID wins ₹3,244.33 cr tariff Barmer REZ project

Key update from exchange disclosures

State-owned Power Grid Corporation of India Ltd (POWERGRID) has been declared the successful bidder under Tariff Based Competitive Bidding (TBCB) for a new inter-State transmission system linked to renewable evacuation from Rajasthan. The company disclosed that it will develop the project on a Build, Own, Operate and Transfer (BOOT) basis. The project relates to the Rajasthan Renewable Energy Zone (REZ) Phase-IV (Part-5: 6 GW) associated with the Barmer Complex. POWERGRID said it has quoted annual transmission charges of ₹3,244.33 crore for the scheme. The award adds to a series of TBCB wins the company has disclosed in recent months, including renewable integration projects in Gujarat and grid stability works involving synchronous condenser units.

What the Barmer REZ Phase-IV project covers

POWERGRID identified the project as: “Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part-5: 6 GW) [Barmer Complex] Barmer-II: 6 GW (Solar) (LCC Configuration)”. The scope includes the establishment of a Barmer-II substation in Rajasthan and a South Kalamb substation in Maharashtra, along with augmentation of the South Kalamb substation. A central element of the plan is a ±800 kV HVDC bipole line between Barmer-II and South Kalamb. The company stated the line will span approximately 1,000 km and traverse Rajasthan, Gujarat and Maharashtra.

Transmission lines and grid support equipment in scope

In addition to the HVDC corridor, the project also includes construction of 400 kV transmission lines across Rajasthan, along with associated bays. POWERGRID also disclosed that two synchronous condenser (SynCon) units will be installed at the Barmer-II Power Station along with associated bays. These elements, taken together, describe a large inter-state transmission buildout designed around evacuating renewable generation and supporting grid stability across states.

Tariff and delivery structure under TBCB

The project is being implemented under the TBCB framework, where annual transmission charges are discovered through competitive bidding. POWERGRID’s quoted annual transmission charges for the Barmer scheme are ₹3,244.33 crore. The company said the project will be developed on a BOOT basis, implying the developer builds, owns and operates the asset for a period before transfer, in line with the project structure outlined in the disclosure.

A parallel Gujarat win: 6,500 MW renewable integration

POWERGRID separately disclosed that it was declared the successful bidder under TBCB to establish an inter-state transmission system for renewable energy projects in Gujarat at a discovered tariff of ₹822.91 crore per annum. The project title, as provided, is: “Transmission system for Integration of Power from RE Projects in Jam Khambhaliya REZ in Gujarat - Phase II (5,500 MW) and Jamnagar Phase-I (1,000 MW)”. The combined capacity referenced in the disclosure totals 6,500 MW. POWERGRID said the company received the Letter of Intent (LoI) on August 21, 2026, and the project will also be developed on a BOOT basis.

Gujarat project scope: GIS substation and 765 kV lines

For the Gujarat scheme, POWERGRID disclosed that the scope involves establishing a new Gas Insulated Substation (GIS) at Kalyanpur, Gujarat. It also includes Information and Communication Technology (ICT) augmentation and bay extension works at under-construction substations in Gujarat. In addition, POWERGRID said it will construct 765 kV transmission lines traversing the state of Gujarat. Together, these assets are aimed at integrating renewable power from the Jam Khambhaliya and Jamnagar zones into the interstate grid.

Reported pipeline: Barmer project value and “market snapshot”

A “market snapshot” dated August 21, 2026 described POWERGRID’s milestones under the TBCB route and referenced multiple wins. Within that snapshot, the Barmer transmission system contract was described with an estimated project value of ₹26,000 crore. The same snapshot reiterated the Gujarat renewable integration project at an annual tariff of ₹822.91 crore. The disclosures frame these developments as expansions to POWERGRID’s transmission pipeline through competitively bid, project-specific annual transmission charges.

Other recent TBCB wins disclosed by the company

POWERGRID has also been declared the successful bidder for an ISTS project titled “Installation of 2 Nos. of Synchronous Condensers (SynCon) units at 765/400/220kV Fatehgarh-II PS,” to be executed under BOOT. The company received the LoI for this project on July 17, 2026, and disclosed that the project comprises installation and commissioning of two SynCon units at the 765/400/220 kV Fatehgarh-II pooling station with associated bays.

Separately, POWERGRID disclosed it was declared the successful bidder for an ISTS project titled “Augmentation at Bhadla-III, Ramgarh PS and Kanpur (PG),” also on a BOOT basis under TBCB. The stated scope comprises augmentation and bay extension works at Bhadla-III substation (Rajasthan), Ramgarh substation (Rajasthan), and Kanpur substation (Uttar Pradesh). POWERGRID said the LoI for this project was received on July 09, 2026.

Stock reaction mentioned in the disclosures

One of the updates cited that POWERGRID shares rose 1.06% to ₹286.65 after the company emerged as the successful bidder for the Fatehgarh-II synchronous condenser project under the TBCB route. The movement was linked to the award update and the LoI receipt dated July 17, 2026. The disclosures do not provide further market commentary beyond the price move and the project details.

Summary table: projects and key disclosed numbers

Market impact: what the disclosed awards indicate

The disclosed awards highlight the continued use of TBCB for interstate transmission expansion tied to renewables and grid reinforcement. The Barmer project combines long-distance HVDC transmission with additional AC network elements and synchronous condenser units, indicating a focus on moving large renewable output across states while supporting system stability. The Gujarat project is positioned around integrating renewable power through new GIS infrastructure, ICT augmentation, and extra-high-voltage lines.

On the financial side, the key disclosed revenue-linked metrics in these updates are the annual transmission charges of ₹3,244.33 crore for the Barmer scheme and the discovered annual tariff of ₹822.91 crore for the Gujarat integration project. The Barmer project is also associated with an estimated project value of ₹26,000 crore in the referenced market snapshot. Beyond these figures and the stated stock move on the Fatehgarh-II update, the disclosures do not provide additional quantified impacts on earnings or timelines.

Why these wins matter for POWERGRID’s project pipeline

The sequence of LoIs and bidder declarations across Rajasthan, Gujarat, and the Fatehgarh-II and Bhadla-III related works suggests a broadened set of projects spanning renewable evacuation, integration, and grid support. The projects also show the mix of technologies being deployed, including ±800 kV HVDC for long-distance transfer, 765 kV and 400 kV AC networks for regional reinforcement, and synchronous condensers for voltage support and system strength.

The disclosures repeatedly specify the BOOT model, reinforcing that these are project assets to be developed and operated under a structured concession framework. The company’s repeated presence as a successful bidder under TBCB indicates active participation in competitively bid transmission opportunities rather than only regulated cost-plus additions.

Conclusion

POWERGRID’s disclosures across September 2 and August 21, 2026, along with earlier July updates, show multiple TBCB wins led by the Barmer REZ Phase-IV (Part-5: 6 GW) evacuation system at ₹3,244.33 crore annual transmission charges and the Gujarat 6,500 MW integration project at ₹822.91 crore per annum. The next formal steps for each project will depend on LoIs already referenced in the filings and subsequent execution milestones under the BOOT framework.