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KEC International wins record India grid order months after PGCIL ban lifted

KEC International wins record India grid order months after PGCIL ban lifted

Built World

State utility awards ₹2,872 crore in 765 kV contracts to evacuate Gujarat renewable power; the Centre approved the national GEC-III corridor scheme in September

October 25th, 2026: Centre clears Andhra Pradesh transmission project under GEC-III

Overview

Updated Oct 26

Power Grid Corporation of India, the state-run grid utility, barred KEC International from its tenders from November 18, 2025 for nine months. On October 24, 2026, the utility awarded KEC its largest-ever Indian contract: ₹2,872 crore in turnkey orders for 765 kV transmission lines.

The lines will carry 8.5 GW of renewable power from Gujarat to the national grid. The win lifts KEC's year-to-date order intake past ₹13,500 crore, of which about ₹9,500 crore comes from its transmission and distribution division. Separately, the central government approved the national Green Energy Corridor-III scheme on September 30, and on October 25 cleared a transmission project in Andhra Pradesh under it.

Why it matters

Gujarat's solar and wind power depends on transmission lines to reach the grid — KEC's execution decides whether 8.5 GW arrives on time.

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Key Indicators

₹2,872 crore
Order value from PGCIL
Design, supply, and installation of 765 kV transmission lines; largest-ever India T&D order for KEC.
₹13,500 crore
Year-to-date order intake
KEC's cumulative FY27 orders, including about ₹9,500 crore from the T&D division.
8.5 GW
Renewable capacity evacuated
Gujarat renewable generation the new 765 kV lines will move to the national grid.
₹335.30
BSE share price after order win
KEC closed near this level on the order day, up 2.37% from ₹327.55 the previous close.

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People Involved

VK
Vimal Kejriwal
Managing Director and CEO, KEC International
Leading KEC through its largest India T&D order after a nine-month PGCIL exclusion

Organizations Involved

KEC International
KEC International
Infrastructure EPC Company
One of India's largest transmission line EPC contractors; won its largest India T&D order on October 24, 2026

Mumbai-based company that designs, supplies, and installs transmission lines, towers, cables, and civil infrastructure for Indian and Middle Eastern utilities.
Power Grid Corporation of India Limited (PGCIL)
Power Grid Corporation of India Limited (PGCIL)
State-run transmission utility
India's main grid operator and largest transmission owner; awarded KEC its record contract

State-owned company that owns and operates the bulk of India's high-voltage inter-state transmission network and runs national and regional load dispatch centers.
RPG Group
RPG Group
Indian Conglomerate
Parent company of KEC International

Diversified Indian business group whose infrastructure arm, KEC International, is one of the country's leading transmission EPC contractors.

Timeline

November 2025 October 2026

7 events Latest: October 25th, 2026 · 2 weeks ago
Tap a bar to jump to that date

  1. Centre clears Andhra Pradesh transmission project under GEC-III

    Latest Government Action

    The central government approved Andhra Pradesh's intra-state transmission plan under the GEC-III programme. Reports give conflicting project costs, ₹27,370 crore and ₹21,838 crore, and the difference is unexplained.

  2. KEC lands ₹2,872 crore PGCIL order

    Order Win

    Largest-ever India T&D order: 765 kV lines to evacuate 8.5 GW of Gujarat renewable energy.

  3. KEC wins ₹1,006 crore orders

    Order Win

    Orders span T&D, civil, and cables-and-conductors businesses, including a 400 kV Oman line.

  4. KEC wins ₹1,014 crore orders

    Order Win

    Includes first 765 kV transmission line for a pumped storage plant in Western India.

  5. Union Cabinet approves GEC-III scheme

    Government Action

    The national Green Energy Corridor Phase-III scheme was approved at about ₹1.86 lakh crore, with roughly ₹1.36 lakh crore for intra-state transmission. New projects will be awarded through competitive bidding.

  6. PGCIL revokes exclusion order

    Regulatory Action

    PGCIL lifts the ban, allowing KEC to bid again immediately after considering KEC's representations.

  7. PGCIL bars KEC from tenders

    Regulatory Action

    PGCIL excludes KEC from its tenders for nine months over alleged irregularities.

Scenarios

1

KEC lands more PGCIL contracts as ban fully fades

Likely Resolves by Q1 2027

Discussed by: KEC management and infrastructure sector analysts tracking PGCIL's tender pipeline

The exclusion is behind KEC, and the record award shows PGCIL is again willing to hand it major work. India's transmission buildout, especially 765 kV lines for renewable evacuation, has years of runway. If KEC keeps winning, additional PGCIL packages would swell a backlog already at ₹13,500 crore year-to-date. Its debt of ₹6,568 crore could limit how much new work it bids on.

2

Execution pressure shows in Q3 numbers

Possible Resolves by Feb 15, 2027

Discussed by: Mint and economic dailies tracking KEC's Q1 profit decline and debt position

KEC's recent quarterly profit has fallen, per the earlier reporting this story cites. The new 765 kV orders carry scale but also execution and cost risk. If steel, tower, or labor costs run over on a fixed-price turnkey contract, margins thin out. Q3 results will show whether the backlog converts into profit or just revenue.

3

Backlog conversion drives India T&D growth

Possible Resolves by May 31, 2027

Discussed by: Company guidance in the order announcement and investor commentary on T&D sector momentum

With ₹13,500 crore in year-to-date orders and a record backlog, KEC's India T&D division could see revenue step up sharply as the 765 kV projects mobilize. Full-year results will reveal whether execution keeps pace with backlog conversion. Early signs include the ₹9,500 crore T&D contribution to year-to-date orders.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

July 2012

India's 2012 grid collapse (July 2012)

Two days of blackouts cut power to an estimated 620 million people across northern and eastern India, the largest blackout in history. The grid operator, then run by Power Grid, faced heavy criticism for weak transmission capacity and poor coordination.

Then

India launched a wave of grid-strengthening investments and added interregional transmission capacity.

Now

Transmission spending became a permanent feature of India's power budget, setting the stage for today's renewable evacuation lines.

Why this matters now

The 765 kV lines KEC is building extend that same push — now to carry solar and wind power out of Gujarat instead of coal.

2015-2020

Green Energy Corridor (2015-2020)

India approved the Green Energy Corridor to build high-capacity transmission routes from renewable-rich states to demand centers. Power Grid and private EPC firms, including KEC, competed for the packages.

Then

Thousands of circuit kilometers of 765 kV, 400 kV, and higher lines were commissioned to move solar and wind power.

Now

The corridor template — purpose-built high-voltage lines for renewable pockets — now drives Gujarat and Rajasthan evacuation projects.

Why this matters now

The PGCIL order to KEC is the latest installment of this approach: 765 kV lines designed to evacuate 8.5 GW from Gujarat.

Sources

(10)
+4
The Economic Times KEC International Mint BCEIE AirNews T&D India BSE Nexus Business Upturn ElectroEnergy Kalkine India