Power Grid Secures Major Transmission Project in Gujarat, Shares Surge to 52-week High

Successful Bid for Khavda RE Park Project

In an exciting development, Power Grid Corporation of India Limited (Power Grid) emerged victorious in a tariff-based competitive bidding process for the “Transmission system for evacuation of further 7 GW of RE power from Khavda RE Park under Phase III Part B”. This project, based on a build-own-operate-and-transfer (BOOT) model, garnered the company a prestigious Letter of Intent (LoI) on December 4, 2023. This marks a significant milestone for the Power Grid company.

Project Scope and Details

The endeavour encompasses the establishment of a 765/400kV switching station at Vataman in Ahmedabad district. Furthermore, it involves the deployment of three 765kV D/c transmission lines, including a LILO (Loop in Loop out) line, traversing through Gujarat. Extension works at the Navsari and Halvad substations are also integral components of this ambitious project.

Market Response and Share Performance

Following this groundbreaking announcement, Power Grid’s share price surged by nearly 1%, reaching an impressive value of Rs 226 in early trade on December 6. At 9:28 am, the company’s shares were quoting at Rs 224.15, exhibiting a commendable increase of Rs 1.75 or 0.79% on the Bombay Stock Exchange (BSE). This success has propelled its shares to a 52-week high, reflecting investor confidence in the corporation’s strategic ventures.

Consistent Success in Competitive Bidding

This recent triumph isn’t an isolated incident for Power Grid. Just days before securing the Khavda RE park project, the corporation was declared a successful bidder for two other inter-state transmission system projects under the Build-Own-Operate-Transfer (BOOT) basis. This sustained success demonstrates the company’s prowess and competitiveness in the realm of bidding for crucial infrastructure projects.

In summary, Power Grid’s consistent victories in competitive bidding and its securing of pivotal transmission projects signal its robust position in the market. The successful acquisition of the Khavda RE park project in Gujarat underscores the company’s commitment to facilitating the growth and efficiency of India’s power transmission infrastructure. As the corporation continues to expand its footprint in the energy sector, investors remain optimistic about its future prospects and contributions to the nation’s power network.