Power Grid Corporation of India Ltd (PGCIL) has announced the commissioning of an ISTS-TBCB scheme by its wholly-owned subsidiary “Powergrid KPS3 Transmission Ltd.”
In a brief stock exchange filing, PGCIL said that Powergrid KPS3 Transmission Ltd has fully commissioned the project effective August 4, 2025 with the date of commercial operation (DOCO) being August 18, 2025.
Located in Gujarat, the ISTS scheme is formally referred to “Establishment of Khavda Pooling Station-3 (KPS3) in Khavda RE park.”
Here are some project details as per information available with T&D India but not contained in the PGCIL stock exchange communication.
PGCIL formally acquired the project SPV then known as KPS3 Transmission Ltd from bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) on March 21, 2023, after PGCIL was declared winner under the tariff-based competitive bidding (TBCB) framework.
From L3 to L1
PGCIL had quoted the winning annual transmission charge (tariff) of Rs.755.29 million, getting the better of three other bidders – Adani Energy Solutions Ltd, Resonia Ltd and Dineschandra R Agrawal Infracon Pvt Ltd – during the e-reverse auction conducted on February 21, 2023. Two more contenders Juniper Green Transmission Pvt Ltd and Megha Engineering & Infrastructures Ltd (MEIL) had also technically qualified for opening of initial price bids but did not make it to the final (e-reverse auction) bidding stage.
Interestingly, PGCIL was L3 based on its initial price bid but aggressively reduced its quote by over 25 per cent to eventually clinch the project.
Project details
The KPS3 Transmission scheme essentially aimed at developing the 765/400kV, 3×1,500 MVA GIS Khavda Pooling Station-3 (KPS3) in Gujarat. The project also involved a 765kV double-circuit line connecting the newly-commissioned KPS3 to KPS2, running 30 ckm. The first circuit of this line was commissioned on June 30, 2025.
With an estimated cost of Rs.789 crore, the KPS3 Transmission scheme was originally scheduled to commission by December 2024 but faced a time overrun of around eight months.
Meanwhile, KPS2, which is also a 765/400kV GIS substation with total capacity of 6,.000 MVA, is in advanced stage of completion. KPS2 is being developed by an independent ISTS scheme, also won by PGCIL under the TBCB framework.
KP2 and KPS3, and even KPS1 (since commissioned), aim to pool generation from RE developers in the Khavda RE park in Gujarat.
TBCB schemes commissioned in FY26
According to estimates made by T&D India, PGCIL in FY26 so far (up to August 18, 2025) has commissioned four ISTS-TBCB schemes. Apart from KPS3 discussed in this story, PGCIL has commissioned three other schemes housed under: Powergrid ER NER Transmission Ltd, Powergrid Khavda RE Transmission System Ltd and Powergrid ERWR Power Transmission Ltd, respectively.
Capitalization in FY26
PGCIL expects capitalization (commissioning of projects) worth over Rs.22,000 crore for FY26 as a whole. During the first four months of FY26 (April to July), the Central PSU had achieved capitalization of around Rs.2,806 crore. Significant addition to the capitalization volume is expected in the second half (October to March) of FY26. (Read detailed T&D India story dated August 4, 2025)
Also read: PGCIL’s work-in-hand estimated at Rs.1.5 trillion, TBCB dominates
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