Power Grid Corporation of India Ltd (PGCIL) has announced that it has fully commissioned an interstate transmission system (ISTS) scheme in Karnataka, aimed at renewable energy (RE) evacuation.
In a brief stock exchange communication, PGCIL said that the ISTS scheme formally termed as “Transmission scheme for integration of Renewable Energy Zone (Phase-II) in Koppal-II (Phase A & B) and Gadag (Phase-A) in Karnataka” was completely commissioned with effect from October 23, 2026 for which the notification for commercial operation (DOCO: date of commercial operations) was received on the same date.
The ISTS scheme was developed by Powergrid Koppal Gadag Transmission Ltd, a wholly-owned subsidiary of PGCIL. The Central PSU won the scheme under the tariff-based competitive bidding (TBCB) mechanism.
It may be noted that the said wholly-owned subsidiary has since been amalgamated with Powergrid Khavda II-C Transmission Ltd, effective March 1, 2026. (Learn more on the restructuring of PGCIL’s TBCB subsidiaries – first phase, second phase)
Background
PGCIL acquired the project SPV, then known as “Koppal II Gadag II Transmission Ltd” from bid process coordinator PFC Consulting Ltd (PFCCL) on December 26, 2023.
PFCCL had incorporated the project SPV as its wholly-owned subsidiary on July 21, 2023. PGCIL emerged winner under the TBCB framework quoting the winning tariff (annual transmission charges) of Rs.3153.46 million, getting the better of three other contenders – Adani Energy Solutions Ltd (AESL), Resonia Ltd and Tata Power – in the e-reverse auction.
Scheme objective
The Koppal-Gadag scheme is part of an overall plan to help evacuation of 11 GW of power from RE-rich regions like Koppal, Gadag, Davanagere/Chitradurga, Bijapur, Bellary and Tumkur. The total RE potential in Karnataka is estimated at 17 GW, which is part of the 86-GW potential in the entire southern region.
Originally, the scheme was to be implemented as two separate schemes – one for Koppal-II (Phase-A) and Gadag-II (Phase A), and the other for Koppal-II (Phase B). These two schemes were later unified into a single scheme.
Project elements
The greenfield 765/400/220kV Koppal-II pooling station with a total transformation capacity of 8,000 MVA arising from 765/400kV, 4×1500 MVA and 400/220kV, 4×500 MVA interconnecting transformers (ICT) is the key element of the project. This PS is referred to as Koppal-II (Phase A & B). In Phase-A, total transformation capacity of 4,000 MVA was commissioned and the remaining 4,000 MVA in Phase-B. Another pooling station, Gadag-II (Phase-A), with 400/220kV, 2×500 MVA, is part of the project, taking the total transformation capacity of the scheme to 9,000 MVA.
These two pooling stations are interconnected by a 400kV double-circuit line. The Koppal-II PS is linked to two existing substations of PGCIL – Narendra (New) and Raichur – by 765kV double-circuit lines, making a transmission line network of 609 ckm for the project as a whole.
Commissioning schedule
By original schedule, the Koppal-Gadag scheme was to commission in 24 months from the SPV transfer date, which worked out to December 26, 2025. However, delayed land acquisition for the two pooling stations coupled with RoW-related constraints in Koppal, Vijaypura and Gadag regions, pushed back the commissioning schedule by around ten months. For instance, land acquisition for the Koppal-II pooling station was completed only in December 2024, taking up half of the two-year gestation period.
Augmentation scheme
It is worth noting that PGCIL, through another TBCB subsidiary “Powergrid Koppal Gadag Augmentation Transmission Ltd,” acquired in January 2025, is implementing a scheme to augment transformation capacities at the Koppal-II and Gadag-II pooling stations developed through Powergrid Koppal Gadag Transmission Ltd.
Under the augmentation scheme that is currently under execution and expected to commission by June 2027, transformation capacities at the Koppal-II and Gadag-II stations will be augmented by a total of 10,500 MVA. This will come from 765/400kV, 3×1500 MVA and 400/220kV, 5×500 MVA ICTs at Koppal-II and 400/220kV, 7×500 MVA ICTs at Gadag-II. Besides, a second 400kV double-circuit line (of around 77 ckm) connecting the two pooling stations is also envisaged.
Capitalization phase
PGCIL appears to be in a phase of healthy capitalization. Apart from the Koppal-Gadag commissioning discussed in this story, the Central PSU, very recently, commissioned two RE-evacuation schemes, one each in Rajasthan and Karnataka.
In an exclusive reported dated October 5, 2026, tndindia.com had discussed the prospects of as many 19 ISTS-TBCB schemes, including six of PGCIL, getting fully commissioned in the current quarter (Q3: October to December) of FY27. (Read full report.)
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