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POWERGRID wins HVDC project to move 6 GW of Rajasthan solar power

POWERGRID wins HVDC project to move 6 GW of Rajasthan solar power

Built World

GE Vernova has the converter stations, BHEL will supply synchronous condensers, and Tata Projects and Jyoti Structures hold line contracts for the ±800 kV link

4 days ago: BHEL wins ₹600-900 crore order for Barmer-II synchronous condensers

Overview

Updated 4 days ago

Power Grid Corporation of India has placed the main equipment orders for its 6-gigawatt solar line. GE Vernova T&D India holds a Letter of Award dated November 3, 2026, for the high-voltage direct current (HVDC) converter stations at Barmer-II and South Kalamb.

On November 7, Bharat Heavy Electricals Limited (BHEL) won a separate ₹600-900 crore contract to supply and install two synchronous condensers at the Barmer-II terminal, with work scheduled over 44 months. POWERGRID completed its takeover of the project company, Barmer HVDC Power Transmission, on September 23, 2026, after winning the auction on September 2 with annual transmission charges of ₹3,244 crore. Line contracts are following: Tata Projects won a ₹690.23 crore package for part of the bipole on November 2, and Jyoti Structures took two other line packages.

Why it matters

Rajasthan's desert solar is stranded without long-distance grid capacity; this line decides whether India's renewable target can actually reach the cities.

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Key Indicators

₹24,974 crore
Estimated project cost
RamRajya News cites a ₹24,974 crore estimate; Business Upturn's analyst range is ₹25,000-26,000 crore. Positive signal for GE Vernova, Hitachi Energy, and Siemens.
48 months
First HVDC pole commissioning timeline
Implementation period for the first pole; the second pole follows six months later.
₹600-900 crore
BHEL synchronous condenser order
Value of BHEL's domestic contract to supply and install two synchronous condensers at Barmer-II, excluding GST. The work is scheduled over 44 months.

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Organizations Involved

Power Grid Corporation of India Limited (PGCIL)
Power Grid Corporation of India Limited (PGCIL)
State-run transmission utility
Won the Barmer HVDC auction, took over the project company on September 23, 2026, and awarded converter and synchronous-condenser contracts to GE Vernova and BHEL

India's central transmission utility, owning and operating the bulk of the national high-voltage grid.
REC Power Development and Consultancy Limited (RECPDCL)
REC Power Development and Consultancy Limited (RECPDCL)
Bid Process Coordinator
Ran the TBCB auction that POWERGRID won; transferred the project company to POWERGRID on September 23, 2026

A subsidiary of state-owned REC Limited that manages transmission bidding auctions for the Ministry of Power.
Ministry of Power, Government of India
Ministry of Power, Government of India
Federal government ministry
Oversees the REZ framework and monitors project execution

The union ministry responsible for transmission policy and the Renewable Energy Zone framework.
GE Vernova T&D
GE Vernova T&D
Grid equipment manufacturer
Awarded the converter station contract; received a Letter of Award dated November 3, 2026

One of a handful of firms that make the specialized converter stations and transformers an ±800 kV HVDC line requires.
BH
Bharat Heavy Electricals Limited (BHEL)
State-run equipment manufacturer
Received a Notification of Award on November 7, 2026, for two synchronous condensers at the Barmer-II HVDC terminal

An Indian state-owned maker of power generation and grid equipment; it will supply and install the synchronous condensers that regulate voltage at Barmer-II.

Timeline

April 2026 November 2026

10 events Latest: 4 days ago
Tap a bar to jump to that date

  1. BHEL wins ₹600-900 crore order for Barmer-II synchronous condensers

    Latest Contract

    BHEL received a Notification of Award from POWERGRID to design, supply, erect and commission two synchronous condensers rated +300/-200 MVAR at the Barmer-II HVDC terminal. The contract is worth ₹600-900 crore excluding GST and runs 44 months.

  2. POWERGRID issues Letter of Award to GE Vernova for HVDC terminals

    Contract

    GE Vernova T&D India gets a Letter of Award dated November 3, 2026 to design and build the 6,000 MW, ±800 kV line-commutated converter terminal stations (2×3,000 MW) at Barmer-II and South Kalamb. The company said the order was booked in the fourth quarter of 2026.

  3. Tata Projects wins ₹690 crore Barmer HVDC line package

    Contract

    Tata Projects secures package TL03, a ₹690.23 crore contract for part of the 800 kV HVDC bipole between Barmer-II and South Kalamb. Jyoti Structures won packages TL01 and TL02.

  4. Jyoti Structures wins ₹949 crore Barmer HVDC line packages

    Contract

    Jyoti Structures received two Notifications of Award worth ₹949.35 crore, excluding GST, from POWERGRID for packages TL01 and TL02 of the ±800 kV Barmer-II–South Kalamb line. The work is scheduled over 38 months.

  5. POWERGRID takes over Barmer HVDC project company

    Corporate

    POWERGRID completes its acquisition of Barmer HVDC Power Transmission, the special purpose vehicle set up by REC Power Development and Consultancy, after winning the project under tariff-based competitive bidding.

  6. GE Vernova T&D India emerges L1 bidder for HVDC converter stations

    Contract

    GE Vernova received a letter from POWERGRID stating it had bid lowest to design, supply, and execute the project's two 3,000 MW HVDC terminal stations using line-commutated converter technology. The company said L1 status does not mean a final award.

  7. POWERGRID shares gain ~1.5% after announcement

    Market

    Stock rises to about ₹270 on NSE; analysts flag positive read-through for GE Vernova T&D, Hitachi Energy, Siemens.

  8. POWERGRID declared winner of Barmer HVDC project

    Award

    State utility wins at ₹3,244.33 crore annual charges after cutting its bid about 14% in the e-reverse auction.

  9. POWERGRID wins separate 20 GW Rajasthan transmission project

    Award

    State utility receives Letter of Intent for a larger renewable-evacuation system, also run by RECPDCL.

  10. RECPDCL issues RFP for Barmer HVDC transmission project

    Bidding

    The Bid Process Coordinator floats tenders for evacuating 6 GW of solar power from Rajasthan REZ Phase IV, Barmer Complex.

Scenarios

1

POWERGRID commissions Barmer HVDC line on schedule

Likely Resolves by End of 2031

Discussed by: POWERGRID management; RECPDCL project monitoring

POWERGRID has already built India's earlier ±800 kV HVDC lines, so the core technology is proven. If land acquisition clears on time across Rajasthan, Gujarat, and Maharashtra, commissioning lands within the planned window, roughly 2030-31. The Ministry of Power and Central Electricity Authority track progress, and generator developers at Barmer-II get a working evacuation corridor.

2

Land and clearance delays push commissioning past 2031

Possible Resolves by End of 2030

Discussed by: Analysts tracking Indian interstate transmission projects

HVDC corridors need rights-of-way across three states, and land compensation disputes plus forest and environmental clearances have delayed earlier grid projects. If approvals slip, commissioning moves to 2032 or later. That would ripple into solar developers' schedules at Barmer-II and could force curtailment of generated power.

3

Cost overruns strain POWERGRID's margins on the project

Possible Resolves by Q1 2029

Discussed by: Cost estimates cited by Business Upturn; historical overruns on Indian HVDC projects

Analysts peg the project at ₹25,000-26,000 crore. Under the BOOT model, POWERGRID absorbs cost increases until a tariff reset, so rising steel, land, or converter-station prices would hit its returns. The company's annual results during the construction phase would reveal whether the aggressive ~14% bid cut still yields acceptable margins.

4

POWERGRID finalizes converter contract and opens EPC packages

Likely Resolves by Q1 2027

Discussed by: DesiMachines tracking POWERGRID procurement; GE Vernova T&D filing

GE Vernova's L1 status became a Letter of Award dated November 3, 2026, and POWERGRID has started splitting the work into packages. Tata Projects took the ₹690.23 crore TL03 line package on November 2, Jyoti Structures won TL01 and TL02, and BHEL received a Notification of Award on November 7 for two synchronous condensers at Barmer-II.

Historical Context

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

2015-2019

India's first ±800 kV HVDC lines (2015-2019)

India commissioned its first ultra-high-voltage direct current lines, including the multi-terminal line from Biswanath Chariali in Assam to Agra in Uttar Pradesh, over 1,700 km long. The Raigarh-Pugalur corridor followed in 2015-2018. Engineers and contractors had to learn how to build and operate the technology at scale.

Then

The lines proved HVDC could span Indian distances reliably and created domestic expertise in converter stations.

Now

POWERGRID now applies that experience to a new generation of lines built specifically for renewable evacuation.

Why this matters now

The Barmer project uses the same ±800 kV HVDC technology at 6,000 MW capacity, but its purpose is new: moving desert solar to load centers instead of thermal power from eastern coal fields.

2006-2011

India's shift to competitive bidding in transmission (2006-2011)

India moved interstate transmission from a cost-plus model, where developers passed costs to consumers, to Tariff-Based Competitive Bidding (TBCB). Private firms entered the market and undercut the state utility POWERGRID on price.

Then

Transmission tariffs fell as competition took hold.

Now

POWERGRID now bids against private operators for each new line, and its competitive behavior, like the ~14% quote cut in this auction, has become essential to winning work.

Why this matters now

The Barmer win is a test of POWERGRID's ability to defend its dominant position under that competitive framework.

2009-2020

China's ultra-high-voltage grid buildout (2009-2020)

China's State Grid built the world's largest ultra-high-voltage network, connecting remote wind and solar zones in the northwest to coastal industrial cities. Lines stretched 2,000-3,000 km across deserts and mountains.

Then

China avoided severe renewable curtailment by building transmission in parallel with generation.

Now

The playbook, build long-distance grid first, became the reference for any country scaling renewables far from demand.

Why this matters now

India faces the same geographic mismatch, and the Barmer HVDC corridor is part of the same strategy applied to Rajasthan's solar belt.

Sources

(22)
+16
InvestyWise Sahi Indian Masterminds PSU Watch Business Upturn WordUp News MVA Pulse SolarQuarter Zee Business Hindi Power Grid Corporation of India CNBC TV18 RamRajya News DesiMachines GE Vernova GreentechLead Power Peak Digest Construction World PSU Connect POWER Magazine Vyqon Power Peak Digest CNBC TV18