IndiGrid Infrastructure Trust (IndiGrid) has commissioned an interstate transmission system (ISTS) scheme housed under “Ishanagar Power Transmission Ltd,” which was acquired under the tariff-based competitive bidding (TBCB) route.
In a release, IndiGrid said that the project located in Madhya Pradesh was commissioned in October 2026.
Formally termed as “Western Region Expansion Scheme (WRES) – XXXIII (Part C),” the scheme was acquired by IndiGrid in February 2024 under the TBCB framework. The project involves around 33 ckm of 765kV lines and the 765/400/220kV Ishanagar (New) substation with transformation capacity of 4,000 MW arising from 765/400kV, 2×1500 MVA and 400/220kV, 2×500 MVA interconnecting transformers.
This, according to information available with tndindia.com, the is the second instance of IndiGrid commissioning a greenfield ISTS-TBCB project, the first being “Kallam Transmission Ltd” commissioned in March 2024.
BESS project
IndiGrid, in Q2FY27, also commissioned a 250 MW/500 MWh standalone battery energy storage system (BESS) project located in Rajasthan and housed under “Rajasthan BESS Pvt Ltd.” This is IndiGrid’s largest BESS project to date and has taken IndiGrid’s total operational BESS capacity to around 1 GWh, among the largest in India, the release noted.
Towards the next phase of energy transition
Commenting on the Q2FY27 performance of IndiGrid, Harsh Shah, Managing Director of IndiGrid, said: “We delivered consistent performance this quarter and met our distribution guidance. We also signed agreements to acquire two more transmission projects from EnerGrid and have since commissioned our largest battery storage project to date, located in Rajasthan, and another transmission project in Madhya Pradesh. Together, these steps add to the stability and visibility of our cash flows.
India’s power demand is rising quickly, and the next phase of the energy transition depends on moving and storing clean power, not just generating it. That will need large investment in transmission and storage, backed by long-term, patient capital. InvITs are well placed to provide it.
IndiGrid and EnerGrid continue to evaluate new transmission and storage projects to keep our growth pipeline strong, consistent and visible. We will pursue these opportunities, while maintaining our financial discipline, with the aim of delivering stable and growing distributions to our unitholders.” (Read recent exclusive tndindia.com interview with Harsh Shah)
Agreement with EnerGrid
During Q2FY27, IndiGrid signed securities purchase agreements to acquire two transmission projects in Himachal Pradesh from EnerGrid.
Shongtong Power Transmission Ltd: Around 450 ckm lines, 630 MVA transformation capacity, enterprise value of up to Rs.5,300 crore; commissioning expected in Q4FY29
Luhri Power Transmission Ltd: Around 104 ckm lines, 1,050 MVA transformation capacity, enterprise value of up to Rs.1,350 crore; commissioning expected in Q3FY30
Including these two projects, EnerGrid’s under-construction portfolio of eight transmission and BESS projects has a proposed acquisition value of around Rs.12,300 crore, giving IndiGrid clear, multi-year pipeline of acquisitions, the release noted.
IndiGrid and EnerGrid
EnerGrid, officially “Enerica Regrid Infra Pvt Ltd” is a new entity/platform that has been co-promoted by IndiGrid (IndiGrid Infrastructure Trust), British International Investment (BII) and the Norwegian Climate Investment Fund (Norfund). The three partners have committed total investment of $300 million through equity/debt. IndiGrid, it is learnt, will have no equity stake in EnerGrid but will support the platform through subscription to debt instruments. IndiGrid, will be acquiring 100 per cent stake in all projects of EnerGrid, one year after their commissioning. It is further learnt that hereon IndiGrid will not be directly participating in the bidding process for power transmission and battery energy storage systems (BESS) projects. This will now be routed through EnerGrid.
Featured photograph showing an operational transmission asset of IndiGrid is for representation only