Power Grid Secures Key Karnataka Transmission Project for Renewable Energy

ENERGY

Overview

State-owned Power Grid Corporation of India has won a crucial tariff-based competitive bidding project in Karnataka to establish a 400 kV inter-state transmission system. The initiative aims to integrate an additional 3 GW of renewable energy potential into the grid. This development comes alongside the company's second-quarter financial results, which showed a 6% year-on-year dip in net profit but a marginal increase in revenue.

Power Grid Secures Major Transmission Project in Karnataka

Power Grid Corporation of India Ltd has been declared the successful bidder for a significant transmission project designed to bolster renewable energy integration in Karnataka. The state-owned entity won the contract via tariff-based competitive bidding to establish an inter-state transmission system. This project is critical for channeling an additional 3 GW of renewable energy potential into the national grid.

The build, own, operate, and transfer (BOOT) project involves constructing a 400 kV double-circuit transmission line across Karnataka. It also includes augmenting existing infrastructure at the Davanagere and Bellary pooling stations. Power Grid received the letter of intent for this project on January 8.

Financial Performance Review

In parallel, Power Grid Corporation of India reported its second-quarter results for FY25. The company posted a 6% year-on-year decline in net profit, which stood at ₹3,566 crore, missing analyst expectations. Revenue saw a modest 1.8% increase, reaching ₹11,476 crore. EBITDA also declined by 6.1% year-on-year, with margins narrowing to 79.4% from 86% a year prior.
The company's board approved an interim dividend of ₹4.50 per equity share for FY26. Shares of Power Grid Corporation of India ended trading on January 8 down 1.84% at ₹259.25 on the BSE.

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