State-run Power Grid’s order pipeline swelled to ₹1.75 lakh crore at the end of the June quarter from roughly ₹1.48 lakh crore in the same period a year ago. Tariff based competitive bidding (TBCB) accounted for more than 80 per cent of the projects.
Revenue visibility
At the end of the June quarter, TBCB projects accounted for around ₹1.46 lakh crore of the company’s overall project pipeline. This was followed by regulated tariff mechanism (RTM) projects at around ₹25,000 crore. The other businesses, smart metering, data centre, and battery energy storage system (BESS), cumulatively stand at ₹4,200 crore.
While the Maharatna company reported a weaker than expected operating performance on a standalone basis in Q1 FY27, the robust pipeline offers revenue visibility, said an official.
“Coupled with this is the government’s substantial bidding pipeline, such as the over 900 GW generation pipeline by FY36, hydro potential in the North-East and upcoming data centre capacity,” the person added.
Besides, the current bidding pipeline is very strong. Around ₹73,875 crore worth of transmission projects are under bidding with another ₹45,000 crore to be floated. That takes the total bidding pipeline to ₹1.19 lakh crore. Major projects include the Rajasthan Barmer complex HVDC (high voltage direct current), Jam Khambhaliya-Jamnagar-Lakadia project, the ERES Nawada-Durgapur, among others
Capex guidance
Going ahead, the driver of the transmission investment cycle is the Central Electricity Authority’s strategic transmission plan to integrate around 914 GW of non-fossil fuel capacity by FY36. Add to it the estimated ₹6.4-lakh crore plan for exploiting hydro power potential in the Brahmaputra basin and around 71 GW of demand from the data centres.
The company has given a capex guidance of ₹37,000 crore for FY27. At the end of Q1 FY27, Power Grid’s gross fixed assets stood at around ₹3.25-lakh crore.