POWERGRID wins Karnataka RE grid project worth Rs 1,111 cr

Power Grid Corporation of India Limited (POWERGRID) has been selected as the winning bidder for a major Inter-State Transmission System (ISTS) project through the tariff-based competitive bidding route. The company disclosed the development to the National Stock Exchange of India and BSE Limited on January 8, 2026. The project is aimed at strengthening the transmission system for integrating additional renewable energy (RE) potential at Davanagere and Bellary in Karnataka.

The scheme is designed to support evacuation and integration of 3 GW of renewable energy capacity, including 0.25 GW at Davanagere and 2.75 GW at Bellary. POWERGRID said the project will be executed under a Build, Own, Operate, and Transfer (BOOT) framework, a common structure for tariff-based transmission awards.

Regulatory disclosure and award process

POWERGRID said it has been declared the successful bidder under the Tariff-Based Competitive Bidding (TBCB) process for the project titled “Transmission system strengthening for integration of additional RE potential at Davanagere (0.25 GW) and Bellary (2.75 GW).” The intimation was made via a formal exchange filing on January 8, 2026.

The company also disclosed that the Letter of Intent (LoI) for the project is dated January 7, 2026, and was received on January 8, 2026. Such timelines matter for investors tracking when a project moves from bid award to the execution phase and eventual revenue recognition through regulated transmission tariffs.

What the Karnataka project covers

The core objective of the awarded ISTS project is to strengthen the transmission system to integrate additional renewable energy potential in Karnataka, specifically at Davanagere and Bellary. The planned RE integration is 3 GW in total, split between 0.25 GW at Davanagere and 2.75 GW at Bellary.

POWERGRID stated that it will construct a 400 kV double-circuit transmission line passing through Karnataka as part of the project. The focus on a double-circuit line indicates a design geared toward higher transfer capability and reliability, which is relevant when connecting renewable generation that can be variable and geographically concentrated.

Project cost and model

The project is to be developed on a BOOT basis. Under this structure, the developer builds, owns, and operates the transmission asset for a defined period, and later transfers it, in line with the bid terms.

The estimated capital cost for the Davanagere-Bellary RE integration project is Rs 1,111 crore. Capital cost is a key reference point for project scale, execution requirements, and the eventual tariff pathway under the competitive bidding framework.

Competitive landscape and bidders

The technically qualified bidders for this project included Adani Energy Solutions Limited, H.G. Infra Engineering Limited, POWERGRID, and Resonia Limited. The presence of multiple technically qualified bidders underlines the competitive nature of TBCB awards, where tariff outcomes can be influenced by a bidder’s cost of capital, execution track record, and operating assumptions.

For POWERGRID, repeated participation and wins in TBCB-linked projects extend its operational footprint beyond its traditional regulated framework, while still remaining within the transmission sector’s structured contracting environment.

How this fits India’s renewable integration push

The project’s stated purpose is to enable evacuation and integration of renewable energy at two Karnataka nodes. Davanagere is earmarked for 0.25 GW and Bellary for 2.75 GW, indicating that Bellary is the larger aggregation point in this scheme.

Transmission strengthening is a prerequisite for large-scale renewable integration because generation build-outs need matching grid capacity to move power from resource-rich areas to consumption centers. The Davanagere-Bellary scope, as described in POWERGRID’s disclosure, directly links transmission additions to quantified RE capacity targets.

Other recent transmission wins and acquisitions cited in reports

Beyond the Karnataka RE integration award disclosed in January 2026, multiple separate reports and filings referenced in the provided material point to other ISTS wins and acquisitions involving POWERGRID under the TBCB route.

One such project is titled “Inter-Regional Strengthening between SR Grid and WR Grid,” to be executed on a BOOT basis. As part of that award, POWERGRID is to develop 765 kV double-circuit transmission lines traversing through Karnataka and Maharashtra, along with associated line bays at both ends. The LoI for this SR-WR project was received on September 29, 2025.

Separately, PTI reported that POWERGRID acquired two key projects worth Rs 3,375 crore. The company won two special purpose vehicles (SPVs) through tariff-based competitive bidding: Vindhyachal Varanasi Transmission Limited and SR WR Power Transmission Limited. Vindhyachal Varanasi Transmission Limited was acquired from PFC Consulting Ltd on October 16 for execution of an inter-regional transmission system comprising establishment of a new 765 kV sub-station at Prayagraj and 765 kV transmission lines traversing Uttar Pradesh and Madhya Pradesh. SR-WR Power Transmission Limited was acquired from BPC REC Power Development & Consultancy Ltd on October 17, comprising a 765 kV transmission line traversing through Karnataka and Maharashtra along with associated line bays at both ends.

Market and stock references mentioned alongside project updates

In one market update linked to a transmission award spanning Uttar Pradesh and Madhya Pradesh, POWERGRID shares were reported to be trading with a 0.57% dip at ₹287.45 on the NSE on September 19, 2025 at 10:22 am. In another update tied to a Davanagere-related strengthening project, the stock was reported lower by 1.21% at ₹276.50 on the NSE as of 10:12 AM on August 28, 2025.

These price references appear alongside project news flow and illustrate how investors often react in the short term to incremental order wins, even when the broader value is realised over long project and operating timelines.

Key facts table

Timeline of cited project milestones

Why the Davanagere-Bellary award matters

The Davanagere and Bellary project ties transmission build-out to specific renewable integration targets of 3 GW. That explicit linkage is important because it shows the grid’s role as an enabler of clean energy additions, not just a standalone infrastructure expansion.

The award also reinforces how TBCB projects continue to be a major route for new ISTS development, with multiple qualified bidders competing on tariff outcomes. For POWERGRID, the disclosed capex estimate of Rs 1,111 crore points to a sizeable execution programme in Karnataka, anchored around a 400 kV double-circuit line.

Conclusion

POWERGRID’s January 8, 2026 disclosure confirms it has won the Davanagere-Bellary interstate transmission strengthening project under the TBCB route, designed to integrate 3 GW of renewable energy capacity in Karnataka at an estimated cost of Rs 1,111 crore. The next tracked milestone, based on the company’s update, is post-LoI execution activity as the BOOT project moves into implementation.