New Delhi: State-owned power transmission major Power Grid Corporation of India Limited (POWERGRID) has acquired the TBCB project special purpose vehicle (SPV) “SR and ER Power Transmission Limited” for the execution of the “Inter-Regional Strengthening between Southern Region (SR) Grid and Eastern Region (ER) Grid” project.
The project has an estimated cost of ₹2,722 crore, based on National Competitive Bidding (NCB/TBCB) cost estimates, and marks a significant addition to POWERGRID’s inter-regional transmission portfolio.
Project Scope and Key Features
The transmission project involves:
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Establishment of a 765 kV double-circuit (D/C) transmission line
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Line routing through Andhra Pradesh and Odisha
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Construction of associated transmission line bays
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Installation of reactor systems for grid stability
Once completed, the project will substantially enhance power transfer capability between the Southern and Eastern regional grids.
Strategic Importance
The inter-regional strengthening scheme is expected to:
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Facilitate power imports into the Southern Region
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Support rising electricity demand from industrial growth
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Enable large-scale Green Hydrogen and Green Ammonia projects
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Improve grid reliability and operational flexibility
With renewable energy capacity expanding rapidly in eastern and southern India, the project will play a critical role in balancing generation and consumption across regions.
TBCB Model and POWERGRID’s Role
The project has been awarded under the Tariff Based Competitive Bidding (TBCB) framework, under which POWERGRID has emerged as the successful bidder and subsequently acquired the project SPV.
POWERGRID, India’s largest power transmission utility, continues to strengthen the national grid architecture through strategic acquisitions and execution of high-voltage transmission corridors.
Big Picture
The acquisition aligns with India’s broader energy transition goals, particularly the push for clean energy integration, inter-regional power flow optimization, and infrastructure readiness for green industrial corridors.