Here is a detailed account of recent developments on two interlinked ISTS-TBCB schemes – Kandla green hydrogen and Lakadia-II – in Gujarat. The former has come under review, resulting in the latter undergoing modification in project scope.
Kandla GHA
On February 19, 2025, Reliance Industries Ltd was issued the letter of intent for developing an ISTS-TBCB scheme, formally referred to as “Transmission system for supply of power to Green hydrogen/ammonia manufacturing potential in Kandla area of Gujarat (Phase-I: 3 GW).”
However, the transfer of the project SPV “Kandla GHA Transmission Ltd” was put on hold based on a communication from the Union power ministry citing absence of GNA (general network access) applications from developers of green hydrogen/green ammonia in the Kandla region of Gujarat.
In February 2026, nearly a year after it received the letter of intent, RIL expressed its inability to extend the validity of its bid (transmission tariff) and the associated bid bond.
In April 2026, the bid evaluation committee (BEC) held a meeting to discuss the possibility of re-bidding of the scheme. However, no decision was arrived at, pending directions from the Union power ministry.
Meanwhile, both CTUIL and MNRE have maintained that there are no GNA applications for RE power from green hydrogen/green ammonia developers in Kandla region.
The Kandla GHA schemes therefore still remains in a state of uncertainty, and in most likelihood, will not be pursued further.
L&T’s green ammonia plan
In an interesting development, Larsen & Toubro, through its group entity L&T Energy GreenTech Ltd (LTEGL), said that it would be putting up 300 ktpa (0.3 million tpa) green ammonia project at Kandla, in collaboration with ITOCHU Corporation of Japan.
This plant could be expanded to 1.8 million tpa, over six phases in future. In view of this, LTEGL would need to draw RE power by December 2029, necessitating completion of the Kandla GHA scheme tendering process by December 2026.
This was formally communicated by L&T to the Union power ministry in April 2026.
Now that the re-bidding or revival of the Kandla GHA seems unlikely and that RE power will be needed for L&T’s green ammonia pursuits in Kandla, the Lakadia-II scheme, currently under bidding, is being explored as a solution.
L&T’s formal announcement of a joint development agreement with ITOCHU was made in August 2025. Click here for detailed story.
Lakadia-II scheme
The ISTS-TBCB scheme termed as “Transmission system for integration of power from RE projects in Lakadia REZ in Gujarat – Phase II (7500 MW)” and housed under “Lakadia II Power Transmission Ltd” is currently under bidding.
The two schemes Kandla GHA and Lakadia II are interlinked and interdependent. The Kandla GHA schemes envisages, among other elements, a new 765/400kV, 3×1500 MVA Kandla GIS substation, and a 765kV double-circuit line connecting this to the Halvad GIS substation coming up through yet another ISTS scheme “Halvad Transmission Ltd,” a TBCB subsidiary of Adani Energy Solutions Ltd.
The Lakadia II scheme formally referred to as “Transmission system for integration of power from RE projects in Lakadia REZ in Gujarat – Phase II (7500 MW),” entails, inter alia, putting up the new 765/400kV, 6×1500 MVA and 400/220kV, 10×500 MVA Lakadia-II substation, near Chitrod in Kutch district, Gujarat. This substation will be LILOed to the 765kV double-circuit Halvad-Kandla line envisaged under the Kandla GHA scheme. This LILO would have been around 88 ckm.
This Halvad-Kandla line therefore defines the interdependency of the Kandla GHA and Lakadia II schemes.
In fact, while approving the Lakadia II scheme, it was decided upfront that its implementation schedule of 36 months may be reviewed based on the bidding status of the Kandla GHA scheme.
The alternative
Given that the Kandla GHA scheme, and its constituent Halvad-Kandla line in particular, is shrouded in uncertainty, the National Committee on Transmission (NCT), in its latest meeting, approved modifications to the under-bidding Lakadia II scheme.
Accordingly, the Lakadia-II substation will now be directly connected to the upcoming Halvad substation through a 765kV double-circuit line, running around 280 ckm.
There will be associated bays for termination of this line at both ends, and 240 MVAr, 765kV switchable line reactors at the Lakadia-II end of the Lakadia-II – Halvad line.
More amendments
The Lakadia-II scheme has undergone change in scope for reasons independent of Kandla GHA also. For instance, the Lakadia-II scheme needed to make space provision for a ±800kV, 6000 MW HVDC (LCC) terminal. However, this aspect has now been done away with since the HVDC requirement is under review and not envisaged currently.
Featured photograph is for representation only