New Delhi: Power Grid Corporation of India Limited (PGCIL), a Maharatna Central Public Sector Enterprise under the Ministry of Power, has officially completed the acquisition of Vindhyachal Varanasi Transmission Limited (VVTL) after being selected as the successful bidder under the Tariff-Based Competitive Bidding (TBCB) route. This acquisition marks another significant step in strengthening India’s inter-regional power transmission infrastructure.
Acquisition Finalized Under TBCB Route
According to a regulatory filing, the acquisition was finalized on October 16, following Power Grid’s selection as the winning bidder for the project. The project was awarded on a Build, Own, Operate and Transfer (BOOT) basis by PFC Consulting Limited (PFCCL), the designated bid process coordinator.
The acquisition involves 10,000 equity shares of ₹10 each and is valued at approximately ₹19.84 crore, including assets and liabilities as on the acquisition date. The final price may be subject to further adjustments based on audited accounts of VVTL.
Project Details and Strategic Importance
The Vindhyachal Varanasi Transmission Project aims to strengthen the inter-regional transmission network between the Northern Region (NR) and the Western Region (WR) to relieve loading on the 765 kV Vindhyachal–Varanasi double circuit line.
The project scope includes:
- Establishing a new 765 kV substation at Prayagraj, Uttar Pradesh.
- Constructing 765 kV double circuit transmission lines traversing Uttar Pradesh and Madhya Pradesh.
Once operational, this transmission infrastructure will enhance power flow efficiency, improve grid reliability, and support the country’s growing energy demands.
Post-Acquisition Developments
With this acquisition, Power Grid now holds 100% equity in VVTL. The entity was incorporated on April 16, 2025, and has not yet commenced commercial operations. Following the takeover, VVTL will approach the Central Electricity Regulatory Commission (CERC) for approvals regarding the grant of a transmission licence and adoption of transmission charges.
This acquisition further solidifies Power Grid’s leadership role in building and operating critical power transmission infrastructure across India.
Strengthening India’s National Grid
The project aligns with the Government of India’s vision of a robust and resilient national power grid capable of facilitating smooth inter-regional power transfers. By enhancing the NR–WR transmission corridor, the project will help in meeting peak power demands, improving grid stability, and integrating renewable energy generation from multiple regions.
About POWERGRID
Power Grid Corporation of India Limited (POWERGRID) is a Maharatna CPSE under the Ministry of Power and India’s largest electric power transmission utility. The company operates a vast network of transmission lines and substations across the country, ensuring reliable and secure power transfer.
