The Indian government has sanctioned the implementation of the “Green Energy Corridor Phase-II” project, aimed at establishing an Inter-state Transmission System (ISTS) to support a 13 GW renewable energy project in Ladakh. Approved by the Cabinet Committee on Economic Affairs (CCEA) on October 18, 2023, the project aims to enhance the transmission infrastructure necessary for evacuating power generated from renewable sources in Ladakh.
The ISTS GEC-II project entails the construction of approximately 713 km of transmission lines, covering 1,268 circuit kilometers (ckm), and the installation of two 5 GW High Voltage Direct Current (HVDC) terminals in Ladakh (Pang) and Kaital (Haryana). The infrastructure will facilitate the transmission of electricity generated from renewable energy projects totaling 13 GW capacity, along with a 12 GWh Battery Energy Storage System (BESS) in Ladakh.
With an estimated project cost of ₹20,773.70 crore, the Central Financial Assistance (CFA) covers 40% of the project cost, amounting to ₹8309.48 crore. PowerGrid Corporation of India Limited (POWERGRID) will implement the project, financing the remaining project costs through debt and equity. The return on equity (RoE) for the transmission project is capped at 14% (post-tax), as recommended by the Public Investment Board (PIB).
The project, scheduled for completion by the financial year 2029-30, aims to enhance inter-state transmission infrastructure, enabling the evacuation of renewable energy from Ladakh to the national grid via Himachal Pradesh, Punjab, and Haryana. Additionally, an interconnection will link Ladakh to the existing grid, ensuring reliable power supply to the region and facilitating power transmission to the Union Territory of Jammu and Kashmir.
POWERGRID is responsible for executing the project through open tendering, supported by front-end engineering and design (FEED) studies to address environmental, technical, and topographical challenges. The FEED study, expected to conclude by December 2024, will inform the tendering process, with project completion anticipated within seven years from the financial year 2023-24 to 2029-30.
The Ministry of New and Renewable Energy (MNRE) will coordinate with the Ministry of Power to ensure the systematic planning and execution of renewable energy generation and transmission projects. The project’s progress will be closely monitored, with monthly management summary reports prepared by PowerGrid and submitted to the MNRE for review.
The sanctioning of the ISTS GEC-II project underscores the government’s commitment to advancing renewable energy infrastructure and achieving its ambitious targets for clean energy generation. By enhancing transmission capabilities and integrating renewable energy sources into the national grid, the project contributes to India’s sustainable energy future while supporting economic growth and energy security.
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