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Power Grid acquires Lakadia II transmission SPV for 7,500 MW Gujarat renewables

Power Grid acquires Lakadia II transmission SPV for 7,500 MW Gujarat renewables

Built World

State-run utility wins tariff-based bid for Gujarat renewable transmission link

October 12th, 2026: PGCIL acquires Lakadia II SPV for Rs 18.43 crore

Overview

Updated Oct 29

Power Grid Corporation of India now owns all of Lakadia II Power Transmission Limited, the company building a 7,500-megawatt transmission link for Gujarat's Lakadia renewable energy zone. The state-run utility paid about Rs 18.43 crore for the project company, and its winning bid set annual transmission charges at Rs 1,152.49 crore, pending approval by the Central Electricity Regulatory Commission.

The project runs on a build-own-operate-transfer basis with 36 months to complete. Its scope covers a new 765/400 kV substation near Chitrod in Gujarat, two synchronous condensers and three 765 kV double-circuit lines running to Halvad, Ahmedabad and Vataman. It is one of five schemes created to carry 14 gigawatts of renewable power out of Gujarat, and Power Grid took three of the five in the October 12 handovers.

Why it matters

Without this link, 7,500 MW of Gujarat solar and wind power has nowhere to go and the state's renewable projects cannot connect.

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Key Indicators

7,500 MW
Renewable capacity to integrate
Capacity of renewable projects in Lakadia REZ Phase II that the transmission system will evacuate.
Rs 1,152.49 crore
Annual transmission charges quoted
PGCIL's winning bid for the project, quoted in September 2026 and still awaiting CERC adoption.
Rs 18.43 crore
SPV acquisition price
Amount PGCIL paid for 100% of Lakadia II Power Transmission Limited, subject to adjustment against audited accounts.
599 km
765 kV double-circuit lines
Total of the three lines from Lakadia-II to Halvad (141 km), Ahmedabad (197 km) and Vataman (261 km).
36 months
Implementation timeline
Scheduled duration from SPV transfer on October 12, 2026 to commissioning.

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People Involved

TB
T. S. C. Bosh
Director (Projects), REC Ltd
Handed over the Lakadia II SPV to PGCIL on October 12, 2026
 Arup Samanta
Arup Samanta
General Manager (Corporate Services), PGCIL
Received the Lakadia II SPV on behalf of PGCIL
 Amit Bhargav
Amit Bhargav
Executive Director (TBCB), PGCIL
Present at the SPV handover ceremony

Organizations Involved

Power Grid Corporation of India Limited (PGCIL)
Power Grid Corporation of India Limited (PGCIL)
State-run transmission utility
Winning bidder for Lakadia-II transmission project

India's central transmission utility, responsible for the interstate power grid.
REC Power Development and Consultancy Limited (RECPDCL)
REC Power Development and Consultancy Limited (RECPDCL)
Bid Process Coordinator
Handed over Lakadia II SPV to PGCIL

Wholly owned subsidiary of REC Ltd that coordinates tariff-based competitive bidding for transmission projects.
LP
Lakadia II Power Transmission Limited
Special-purpose vehicle (project company)
Acquired by PGCIL on October 12, 2026

Project company created to build and operate the Lakadia-II interstate transmission system.
Ceigall India Ltd
Ceigall India Ltd
Infrastructure company
Winning bidder for Jam Khambhaliya Jamnagar transmission SPV

Infrastructure firm that won the Jam Khambhaliya Jamnagar transmission project.
Power Finance Corporation (PFC)
Power Finance Corporation (PFC)
State-run financial institution
Transferred three transmission SPVs on October 12, 2026

State-run financial institution that also coordinates transmission SPV transfers.

Timeline

May 2026 October 2026

6 events Latest: October 12th, 2026 · 1 month ago
Tap a bar to jump to that date

  1. PGCIL acquires Lakadia II SPV for Rs 18.43 crore

    Latest Acquisition

    PGCIL took 100% ownership of Lakadia II Power Transmission Limited.

  2. RECPDCL hands over two transmission SPVs

    Transfer

    Lakadia II went to PGCIL; Jam Khambhaliya Jamnagar went to Ceigall India.

  3. PFC transfers three transmission SPVs to bidders

    Transfer

    Jam Khambhaliya REZ and Lakadia C went to Power Grid; Lakadia A went to AnantGrid Projects.

  4. PGCIL receives Letter of Intent

    Bidding

    PGCIL received LoI after quoting Rs 1,152.49 crore in annual transmission charges.

  5. PGCIL emerges as L1 bidder in e-reverse auction

    Bidding

    PGCIL quoted around Rs 1,150 crore per year in the e-RA for the Lakadia-II scheme.

  6. Lakadia II Power Transmission Limited incorporated

    Incorporation

    SPV created for the Lakadia-II interstate transmission project.

Scenarios

1

Lakadia II transmission project completes on schedule

Possible Resolves by Oct 12, 2029

Discussed by: Project schedule set by RECPDCL bid documents

The project is scheduled for commissioning within 36 months of SPV transfer (October 12, 2026), putting completion around October 2029. PGCIL must build the 765/400 kV substation near Chitrod and three 765 kV double-circuit lines totaling about 599 km, along with two synchronous condensers.

2

Project faces delays beyond 36-month deadline

Possible Resolves by Oct 12, 2029

Discussed by: Common in large Indian transmission projects

Large transmission projects in India often face delays from land acquisition, right-of-way issues, and supply chain constraints. If the 36-month deadline slips, PGCIL may face penalties under the transmission agreement.

3

CERC approves transmission charges for Lakadia II

Likely Resolves by Oct 12, 2027

Discussed by: CERC regulatory process

Following the acquisition, the SPV must obtain a transmission licence and approval of transmission charges from the Central Electricity Regulatory Commission. This is a standard regulatory step for all interstate transmission projects in India.

Historical Context

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

2026

Gujarat 14 GW renewable evacuation plan (2026)

Five independent ISTS-TBCB schemes were created to build transmission for 14 GW of renewable power from Gujarat. Lakadia-II handles 7.5 GW of that total, with the other schemes covering Jam Khambhaliya and Jamnagar zones.

Then

SPVs for all five schemes were transferred to winning bidders in October 2026.

Now

The plan will connect Gujarat's renewable zones to the national grid, supporting India's renewable energy targets.

Why this matters now

Shows Lakadia-II is one piece of a coordinated 14 GW evacuation plan, not an isolated project.

October 2026

Same-day SPV handovers across Gujarat schemes (October 2026)

On October 12, 2026, RECPDCL handed over two SPVs (Lakadia II to PGCIL, Jam Khambhaliya Jamnagar to Ceigall India) and PFC transferred three more (Jam Khambhaliya REZ and Lakadia C to Power Grid, Lakadia A to AnantGrid Projects).

Then

Five transmission projects moved from bidding to implementation on the same day.

Now

The simultaneous handovers signal the scale of India's renewable transmission buildout.

Why this matters now

The Lakadia-II acquisition is part of a broader wave of transmission project transfers happening in the same week.

Sources

(14)
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Power Peak Digest News IP Signal Desk Power Grid Corporation of India Whalesbook Corporate News PSU Connect T&D India Solar Quarter Trade Brains REC Power Development and Consultancy Limited REC Limited Power Peak Digest PSU Connect Power Grid Corporation of India