Bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) has newly incorporated a wholly-owned subsidiary that will act as a special purpose vehicle for an ISTS scheme involving supply of RE power to upcoming green hydrogen plants in Visakhapatnam in Andhra Pradesh.
In a stock exchange communication, RECPDCL said that the wholly-owned subsidiary “Vizag Power Transmission Ltd” was incorporated on February 16, 2026.
The ISTS scheme that this SPV will house is referred to as “Transmission system for proposed green hydrogen/green ammonia projects in Vizag area, Andhra Pradesh (Phase-I)”.
This SPV will be transferred to the developer to be selected under the tariff-based competitive bidding (TBCB) guidelines.
The ISTS-TBCB scheme is currently under bidding and as per current timelines, the last date for submission of technical and financial bids is April 7, 2026.
Objective
With an estimated cost of Rs.8,386 crore and an implementation schedule of 30 months, this scheme seeks to supply RE power to upcoming green hydrogen/green ammonia manufacturing plants in the Vizag region of Andhra Pradesh.
Project elements
The key project elements of this transmission scheme are two new substations in Andhra Pradesh – 4×1500 MVA, 765/400kV Pendurthi (Vizag) GIS substation and 3×1500 MVA, 765/400kV Khamman-II substation. These two substations will be interconnected via a 765kV double-circuit line running about 350 km.
Besides, ISTS connectivity to the proposed Pendurthi substation will be achieved by connecting it to the Srikakulam substation through a 765kV double-circuit line of about 200 km. Khamman-II will be linked to the existing Warangal (New) substation via a 765kV double-circuit line spanning around 100 km. Khammam-II will also be connected to the existing Khammam ISTS substation through a 400kV double-circuit line of about 20 km.
Bidding was on hold
It may be recalled that this scheme was cleared by the National Committee on Transmission (NCT) in August 2025 and was supposed to come up for bidding soon thereafter. However, when the scheme came in for review by the Union power ministry, apprehensions were expressed about the financial security of the scheme. The power ministry essentially wanted to establish whether there would be sufficient offtake of RE power transmitted by this scheme, by green hydrogen producers.
When CTUIL established that connectivity applications were in place, the scheme was allowed to come up for bidding. (More details can be found in tndindia.com’s story dated January 6, 2026).
Kakinada scheme
In Andhra Pradesh itself, there is a similar scheme meant to supply RE power to upcoming green hydrogen/green ammonia units in Kakinada area. This scheme is termed as “Transmission system for proposed green hydrogen/green ammonia projects in Kakinada area, Andhra Pradesh (Phase-I)” and is housed under “Kakinada I Transmission Ltd.”
This scheme, under bidding since March 2025, has seen at least 22 extensions in bid submission date. The latest deadline stands at February 20, 2026. While the reasons for these multiple extensions are not officially available, industry sources say that the bidding documents have undergone revisions on multiple occasions.
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