PGCIL Gets LoI For ₹1,618 Crore Transmission System To Support Green Hydrogen Projects In Kakinada, Andhra Pradesh

Power Generation Jun 16,2026

Power Grid Corporation of India Limited (PGCIL) has been declared successful bidder under the tariff-based competitive bidding (TBCB) framework to establish an interstate transmission system (ISTS) for the project titled "Transmission system for proposed Green Hydrogen / Green Ammonia projects in Kakinada area (Phase-I)." The Letter of Intent was received on June 12, 2026.

The project will be developed on a build, own, operate and transfer (BOOT) basis and comprises a new 765/400 kV gas-insulated substation (GIS), a Static Synchronous Compensator (STATCOM), and associated 765 kV transmission line works in Andhra Pradesh. The estimated project cost is ₹1,618.50 crore, with a completion period of 24 months.

PGCIL emerged as the lowest bidder (L1) for the scheme ahead of eight other contenders. Bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) will formally transfer the project special purpose vehicle, Kakinada I Power Transmission Ltd, to PGCIL.

The transmission infrastructure is intended to support evacuation and grid integration of power for upcoming green hydrogen and green ammonia facilities being developed in the Kakinada region, where total power demand for such projects is estimated at around 6,000 MW. PGCIL has separately also received a Letter of Intent for another ISTS-TBCB scheme, the WR-ER interregional network expansion scheme (Part A), involving new substations in Jharkhand and Chhattisgarh.

 

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