Power Grid Corporation of India Ltd (PGCIL) has formally acquired project SPV “MEL Power Transmission Ltd” making it the Central PSU’s first ISTS-TBCB acquisition of the current fiscal year FY26.
“MEL Power Transmission Ltd” was acquired on June 4, 2025 by PGCIL from bid process coordinator PFC Consulting Ltd (PFCCL).
The project SPV was incorporated on November 20, 2024 as a wholly-owned subsidiary of PFCCL responsible for development of an ISTS scheme known as “Transmission system for evacuation of power from Mahan Energen Ltd generation station in Madhya Pradesh.”
PGCIL won this scheme under the tariff-based competitive bidding (TBCB) mechanism, getting the better of three other contenders – Adani Energy Solutions Ltd, G R Infraprojects Ltd and Megha Engineering & Infrastructures Ltd (MEIL) – that had qualified for opening of initial price bids.
Details on the winning tariff and bidders that participated in the e-reverse auction are awaited.
As already reported by T&D India, PGCIL was issued the letter of intent for MEL Power Transmission Ltd (dated March 31, 2025) on April 1, 2025, but the formal SPV transfer was pending.
Project details
The scheme involves providing ISTS connectivity to the existing 1,200-MW Mahan thermal power plant owned by Mahan Energen Ltd, a subsidiary of Adani Power Ltd. It may be mentioned that the Mahan plant already has ISTS connectivity, but it is on short-term basis under CERC, Connectivity/LTA Regulations, 2009. The project under discussion will provide full-fledged connectivity under CERC, GNA Regulations.
Estimated to cost around Rs.558 crore and with an expected implementation period of 30 months, the scheme involves putting up a 400kV double-circuit line (of around 110 km) from the existing bus of the Mahan power plant to PGCIL’s existing Rewa pooling station (PS) of PGCIL. Two 400kV line bays will also be constructed at the Rewa PS for termination of the aforementioned line. It is learnt that two 400kV line bays at the Mahan power generation station for the new line will be under the scope of Mahan Energen Ltd.
InSTS dimension
The Mahan power plant is also involved in an intrastate transmission system (InSTS) scheme that is housed under “Mahan Transmission Ltd.” This InSTS-TBCB scheme was formally awarded to Adani Energy Solutions Ltd by bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) on March 26, 2025.
ISTS-TBCB in FY26
In FY26 so far, two ISTS-TBCB scheme have been formally acquired by winning developers. The lone case prior to MEL Power Transmission Ltd discussed in this story is that of WRNES Talegaon Power Transmission that was transferred to Adani Energy Solutions Ltd on May 31, 2025. (Read full story)
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