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Power Grid acquires Lakadia II transmission SPV for 7,500 MW Gujarat renewables

Power Grid acquires Lakadia II transmission SPV for 7,500 MW Gujarat renewables

Built World

State-run utility wins tariff-based bid for Gujarat renewable transmission link

Today: PGCIL acquires Lakadia II SPV for Rs 18.43 crore

Overview

Updated 1 hour ago

Power Grid Corporation of India has taken full ownership of Lakadia II Power Transmission Limited. The project company will build a 7,500-megawatt interstate transmission link for Gujarat's Lakadia renewable energy zone. The state-run utility paid about Rs 18.43 crore for the special-purpose vehicle, which it won through tariff-based competitive bidding.

The project, estimated to cost Rs 8,238 crore, will be built on a build-own-operate-transfer basis over 36 months. It is one of five transmission schemes designed to evacuate 14 gigawatts of renewable power from Gujarat.

Why it matters

This transmission link determines whether 7,500 MW of Gujarat solar and wind power can reach the national grid — without it, the renewable projects cannot connect.

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Key Indicators

7,500 MW
Renewable capacity to integrate
Capacity of renewable projects in Lakadia REZ Phase II that the transmission system will evacuate.
Rs 1,152.49 crore
Annual transmission charges quoted
PGCIL's winning bid for the project, quoted in September 2026.
Rs 18.43 crore
SPV acquisition price
Amount PGCIL paid for 100% of Lakadia II Power Transmission Limited.
Rs 8,238 crore
Estimated project cost
Estimated cost of the Lakadia Phase II transmission scheme.
36 months
Implementation timeline
Scheduled duration from SPV transfer to commissioning.

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Timeline

May 2026 October 2026

6 events Latest: Today
Tap a bar to jump to that date
  1. PGCIL acquires Lakadia II SPV for Rs 18.43 crore

    Today Acquisition

    PGCIL took 100% ownership of Lakadia II Power Transmission Limited.

  2. RECPDCL hands over two transmission SPVs

    Today Transfer

    Lakadia II went to PGCIL; Jam Khambhaliya Jamnagar went to Ceigall India.

  3. PFC transfers three transmission SPVs to bidders

    Today Transfer

    Jam Khambhaliya REZ and Lakadia C went to Power Grid; Lakadia A went to AnantGrid Projects.

  4. PGCIL receives Letter of Intent

    Bidding

    PGCIL received LoI after quoting Rs 1,152.49 crore in annual transmission charges.

  5. PGCIL emerges as L1 bidder in e-reverse auction

    Bidding

    PGCIL quoted around Rs 1,150 crore per year in the e-RA for the Lakadia-II scheme.

  6. Lakadia II Power Transmission Limited incorporated

    Incorporation

    SPV created for the Lakadia-II interstate transmission project.

Scenarios

1

Lakadia II transmission project completes on schedule

Possible Resolves by Oct 12, 2029

Discussed by: Project schedule set by RECPDCL bid documents

The project is scheduled for commissioning within 36 months of SPV transfer (October 12, 2026), putting completion around October 2029. PGCIL must build the 765/400 kV substation near Chitrod and three 765 kV double-circuit lines totaling about 599 km, along with two synchronous condensers.

2

Project faces delays beyond 36-month deadline

Possible Resolves by Oct 12, 2029

Discussed by: Common in large Indian transmission projects

Large transmission projects in India often face delays from land acquisition, right-of-way issues, and supply chain constraints. If the 36-month deadline slips, PGCIL may face penalties under the transmission agreement.

3

CERC approves transmission charges for Lakadia II

Likely Resolves by Oct 12, 2027

Discussed by: CERC regulatory process

Following the acquisition, the SPV must obtain a transmission licence and approval of transmission charges from the Central Electricity Regulatory Commission. This is a standard regulatory step for all interstate transmission projects in India.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2026

Gujarat 14 GW renewable evacuation plan (2026)

Five independent ISTS-TBCB schemes were created to build transmission for 14 GW of renewable power from Gujarat. Lakadia-II handles 7.5 GW of that total, with the other schemes covering Jam Khambhaliya and Jamnagar zones.

Then

SPVs for all five schemes were transferred to winning bidders in October 2026.

Now

The plan will connect Gujarat's renewable zones to the national grid, supporting India's renewable energy targets.

Why this matters now

Shows Lakadia-II is one piece of a coordinated 14 GW evacuation plan, not an isolated project.

October 2026

Same-day SPV handovers across Gujarat schemes (October 2026)

On October 12, 2026, RECPDCL handed over two SPVs (Lakadia II to PGCIL, Jam Khambhaliya Jamnagar to Ceigall India) and PFC transferred three more (Jam Khambhaliya REZ and Lakadia C to Power Grid, Lakadia A to AnantGrid Projects).

Then

Five transmission projects moved from bidding to implementation on the same day.

Now

The simultaneous handovers signal the scale of India's renewable transmission buildout.

Why this matters now

The Lakadia-II acquisition is part of a broader wave of transmission project transfers happening in the same week.

Sources

(8)