Power sector infrastructure investment trust (InvIT) IndiGrid has partnered with British International Investment (BII), Norwegian Climate Investment Fund and Techno Electric and Engineering Company towards developing greenfield interstate transmission system (ISTS) projects.
During FY24, IndiGrid operationalized its first greenfield ISTS project, Kallam Transmission and won five additional projects, across ISTS and battery energy storage system (BESS), with an outlay of around Rs 2,000 crore to be deployed over the next 12 to 24 months. Under this partnership, BII and Norfund (through KNI India AS, Norfund’s joint venture with KLP, Norway’s largest pension company will invest in IndiGrid’s three of the ISTS projects won last year. This also includes the under-construction Ishanagar Power Transmission (IPTL), Dhule Power Transmission (DPTL) and Kallam Transco (KTCO).
The projects are expected to support evacuation of renewable energy of around six GW in Madhya Pradesh and Maharashtra. Moreover, Techno, entrusted to co-develop the IPTL and DPTL projects, will invest minority capital and carry out the complete execution of the projects on a lumpsum turnkey (LSTK) basis.
IndiGrid will be acquiring an entire stake in these projects once operational and revenue generating. India requires a substantial investment of Rs 4.75 lakh crore in the transmission sector to facilitate integration of renewable energy capacities and meet its decarburization goals.
Apart from the infusion of capital, they will also bring in ESG expertise to support the transmission sector in India.
