The Power Grid Corporation of India has unveiled ambitious plans for a massive undersea interconnection project with countries in the Middle East, valued at up to Rs 40,000 crore. The announcement was made by R K Tyagi, Chairman and Managing Director of the state-run power transmission giant, following the company’s earnings report for the June quarter.
The proposed project will involve laying a high voltage direct current (HVDC) cable across the seabed with a capacity of up to 2,500 MW. This substantial infrastructure will connect a ‘pulling station’ near Bhuj, Gujarat, to a similar facility on the Middle Eastern coast. The initiative is expected to take up to six years to complete and represents a significant step in expanding India’s power grid reach beyond its immediate neighbors.
Tyagi explained that the company, which saw nearly flat revenue growth in the June quarter, plans to invest Rs 18,000 crore this fiscal year. This investment is aimed at bolstering growth, compensating for revenue declines from older transmission projects, and accelerating the commissioning of new projects.
For the June quarter, Power Grid Corporation reported a modest 3.52 percent increase in net profit, reaching Rs 3,724 crore, with revenues slightly up to Rs 11,279.59 crore from Rs 11,257.60 crore the previous year. Despite these numbers, the company’s stock closed 0.55 percent lower at Rs 342.40 on the Bombay Stock Exchange (BSE) on Monday.
Tyagi also highlighted ongoing discussions with Oman, Saudi Arabia, and the UAE for the undersea interconnection project. This move is part of the company’s broader strategy to enhance its revenue through international projects and diversify into other sectors such as smart meters, data centers, solar power, and green hydrogen.
To address challenges related to transformers and other critical equipment, Power Grid is pre-ordering components to avoid project delays. The company’s focus for the fiscal year includes a significant investment in core transmission lines and renewable energy projects, with a large portion of the investment directed towards these areas.
In addition to the major undersea project, Power Grid is expanding its footprint in smart metering and data centers. The company has secured smart meter projects in Gujarat and is planning to enhance its data center capacities in Chennai, Bengaluru, and Hyderabad.
The planned undersea interconnection project marks a bold step towards strengthening energy ties with the Middle East and demonstrates Power Grid Corporation’s commitment to expanding its global and domestic infrastructure.
