Deal factsCountry: India · Technology: Transmission · Stage: Award · Size: 7.5 GW evacuation, 765 kV · Value: INR 1,152.49 crore a year · Parties: POWERGRID, RECPDCL
Power Grid Corporation of India (POWERGRID) has been declared the successful bidder for the transmission system that will integrate 7,500 MW of renewable capacity from Phase II of the Lakadia Renewable Energy Zone in Gujarat. The state-owned utility received its letter of intent from REC Power Development and Consultancy (RECPDCL) on 3 September 2026, with annual transmission charges of INR 1,152.49 crore under a tariff-based competitive bidding process.
The scheme will be delivered on a build, own, operate and transfer basis. Its scope includes a new 765/400 kV Lakadia-II substation, 765 kV transmission lines across Gujarat, the associated bays and equipment, and a synchronous condenser at the new substation. The condenser is intended to support voltage management and grid stability as large volumes of variable solar and wind output flow onto the interstate network from the Kutch region.
RECPDCL, the bid process coordinator, floated the tender in May 2026, so the award has arrived within four months of launch. POWERGRID disclosed the win to the stock exchanges under Regulation 30 of the SEBI listing rules. The filing did not give an estimated capital cost, a completion schedule or the length of the concession.
The Lakadia award was one of two interstate transmission results announced by RECPDCL on the same day. The coordinator also named the winner of a separate auction, floated in January 2026, for a system to evacuate 6 GW of solar power from the Barmer-II pooling substation in Rajasthan. Together the two schemes cover 13.5 GW of renewable evacuation capacity in India’s two largest solar and wind states.
Why does this matter?
Grid capacity, not generation, is the binding constraint on India’s renewable build-out, and these awards unlock evacuation for 13.5 GW of projects in Gujarat and Rajasthan. For transformer, conductor, substation and reactive power equipment suppliers the pipeline of 765 kV work in western India keeps growing, and the pace of awards is quickening.
What happens next?
POWERGRID will move to sign the transmission service agreement and acquire the special purpose vehicle from RECPDCL, after which procurement of substation equipment, lines and the synchronous condenser can begin. Developers with Lakadia Phase II connectivity will be watching for the commissioning date, which has not yet been made public.
Sources: Mercom India: RECPDCL Names Winner of 7.5 GW Renewable Transmission Auction; Free Press Journal: POWERGRID Wins Rs 1,152.49 Crore Bid, Project To Integrate 7,500 MW; Mercom India: RECPDCL Announces Winner of 6 GW Solar Transmission Auction.
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