Central Electricity Regulatory Commission (CERC) has granted final transmission licence to “Vindhyachal Varanasi Transmission Ltd,” a TBCB subsidiary of Power Grid Corporation of India Ltd that is developing an interregional scheme involving the Northern and Western regional grids.
In a very recent order, CERC has granted transmission licence that will be valid for a period of 25 years.
The ISTS scheme is referred to as “Interregional (NR-WR) transmission system strengthening to relieve loading of 765kV Vindhyachal-Varanasi D/C line” and is housed under PGCIL’s subsidiary “Vindhyachal Varanasi Transmission Ltd.”
PGCIL emerged as the successful developer under TBCB, and acquired the project SPV on October 16, 2025. This SPV was incorporated on April 16, 2025 as a wholly-owned subsidiary of bid process coordinator PFC Consulting Ltd.
Bidding process
Seven bidders were technically qualified for opening of initial price bids. Of these, four made it to the e-reverse auction stage. Alongside PGCIL were Resonia, Dineshchandra R. Infracon Pvt Ltd (DRAIPL) and Enerica 1 Infra Pvt Ltd (co-promoted by IndiGrid).
It is interesting to note that in terms of the initial bids, PGCIL was ranked L4 with a bid of Rs.4100 million being the annual transmission charges (tariff). At the end of the e-reverse auction, which saw 53 bidding rounds, PGCIL emerged L1 with a winning quote of Rs.3231.30 million. In other words, PGCIL downwardly revised its original bid by a significant 21.2 per cent to clinch the project. Incidentally, CERC approved and adopted the tariff of Rs.3231.30 million in its order dated February 4, 2026.
PGCIL has renamed “Vindhyachal Varanasi Transmission Ltd” to “Powergrid Prayagraj Transmission Ltd.”
The project
The Vindhyachal-Varanasi scheme, estimated to cost Rs.2,368 crore, involves building the 765kV Prayagraj substation with 2×330 MVAr 765kV bus reactors and six 765kV line bays, in Uttar Pradesh. This substation will be connected to the Vindhyachal Pooling Station through a 765kV double-circuit line of around 440 ckm. Several LILOs and line bays will also form part of the overall project.
Objective
The principal objective of the scheme is to relieve high loading on the 765kV Vindhyachal-Varanasi line. This high loading inhibits imports by the NR grid, especially during non-solar hours.
PGCIL’s scorecard
According to information available with tndindia.com, PGCIL has formally acquired seven ISTS-TBCB schemes in FY26, so far. Of these two – SR and ER Power Transmission Ltd and Bellary Davanagere Power Transmission Ltd – were acquired lately, in February 2026.
The project SPVs of ISTS-TBCB schemes acquired by PGCIL this year so far are:
- MEL Power Transmission Ltd (Now: Powergrid Mahan Rewa Transmission Ltd)
- Davanagere Power Transmission Ltd (Now: Powergrid Davanagere Augmentation Transmission Ltd)
- Mandsaur I RE Transmission Ltd (Now: Powergrid Mandsaur Augmentation Transmission Ltd)
- Vindhyachal Varanasi Transmission Ltd (Now: Powergrid Prayagraj Transmission Ltd)
- SR WR Power Transmission Ltd
- SR and ER Power Transmission Ltd
- Bellary Davanagere Power Transmission Ltd
PGCIL, on September 4, 2025, received the letter of intent for “Robertsganj Power Transmission Ltd,” an interstate scheme related to evacuation of power from pumped storage plants in Sonbhadra region of Uttar Pradesh. The formal transfer of this SPV, however, was pending as of February 19, 2026. (New names of #5, #6 and #7 in the list above, are not yet available.)
Also read: PGCIL gets transmission licence for interregional-TBCB scheme
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