Aggregate tariff of PGCIL’s recent TBCB schemes pegged at over Rs.2,200 crore per year
- August 17, 2026
The aggregate tariff associated with TBCB schemes won by Power Grid Corporation of India Ltd (PGCIL) in the early months of FY27, stands at over Rs.2,200 crore.
Addressing an investor call concerning the company’s Q1FY27 performance, Burra Vamsi Rama Mohan, CMD, PGCIL, said that PGCIL has won six power transmission projects under the TBCB route in the first four months of FY27 (April to July), involving aggregate tariff of over Rs.2,200 crore.
The tariff stands for the annual transmission charges that a transmission service provider (TSP) stands to earn once the project begins commercial operations. This tariff is valid for the entire tenure of the concession period, which is typically 35 years.
In the case of PGCIL, this aggregate tariff of over Rs.2,200 crore derives from five interstate (ISTS) projects and one intrastate (InSTS) project. It may be noted that the SPV transfer has not taken place in each of the six cases. Here is the list of the underlying project SPVs:
- Kakinada I Transmission Ltd
- WR ER Part A Power Transmission Ltd
- Bhadla Ramgarh Power Transmission Ltd
- Krishnagiri REZ Transmission Ltd
- Fatehgarh II Transmission Ltd
- Humnabad Power Transmission Ltd (InSTS, Karnataka)
In the case of #1 to #4, the project SPV has been formally transferred to PGCIL. In #5, PGCIL has been issued the letter of intent but the formal SPV transfer was pending as of August 16, 2026. In #6, an intrastate scheme in Karnataka, PGCIL has been named L1 bidder, even the LoI issuance was pending as of given date.
According to information available with tndindia.com, the Krishnagiri REZ scheme, with an annual tariff of over Rs.820 crore, is currently PGCIL’s biggest ISTS-TBCB project with respect to tariff, only after the Khavda V-A HVDC scheme. (Read tndindia.com story dated August 5, 2026). The WR-ER project is also significant, involving tariff of around Rs.770 crore per year. In fact, just these two projects make up for combined tariff of nearly Rs.1,600 crore.
The PGCIL top official estimated that during the April-July period of FY27, a total of 19 schemes (covering both ISTS and InSTS) were awarded under TBCB. Of this, PGCIL has secured the aforementioned six.
Assessing PGCIL’s overall performance in the TBCB framework, Rama Mohan said that PGCIL had a tariff-based market share of around 46 per cent with respect to ISTS schemes awarded since the inception of the TBCB regime. As a matter of academic interest, PGCIL’s first ISTS-TBCB scheme, as per information available with tndindia.com, is “Powergrid NM Transmission Ltd,” relating to transmission system in the Nagapattinam/Cuddalore area in Tamil Nadu. The project SPV, then known as “Nagapattinam-Madhugiri Transmission Company Ltd,” was acquired in March 2012 and the project was commissioned in January 2019.
Impact of Barmer HVDC
As reported by tndindia.com on August 12, 2026, five bidders are contending for the mega Barmer HVDC scheme. The project is estimated to cost around Rs.25,000 crore as per National Committee on Transmission (NCT). Going by past findings, the annual tariff associated with the Barmer HVDC scheme is likely to be in the range of Rs.2,500 crore to Rs.3,000 crore. This project, therefore, will wield significant influence on the tariff-based market share of ISTS-TBCB developers in FY27. In Q1FY27, PGCIL led the ISTS-TBCB market in FY27, both in terms of number of schemes and tariff, as discussed in tndindia.com’s exclusive report dated July 6, 2026.
Featured photograph is for representation only