POWERGRID Acquires Kudankulam Transmission Project For Power Evacuation From KNPP Units 3 And 4

Power Grid Corporation of India Limited (POWERGRID) has acquired Kudankulam ISTS Transmission Limited (KISTSTL) through a successful bid under the Tariff Based Competitive Bidding (TBCB) route. This acquisition, announced on January 10, 2025, is a significant move for POWERGRID, which has been selected as the successful bidder to establish the transmission system under the Inter-State Transmission System (ISTS) for evacuating power from the Kudankulam Nuclear Power Plant (KNPP) Unit 3 and 4 (2×1000 MW).

KISTSTL is a special purpose vehicle (SPV) created to implement the transmission project, which involves constructing a 400kV transmission line between KNPP Units 3 and 4 and Tuticorin-II in Tamil Nadu. The project will also include terminal equipment at the Tuticorin-II substation. This acquisition marks an expansion of POWERGRID’s power transmission capabilities, aligning with its core business of power transmission. The transmission project is essential for strengthening the power evacuation infrastructure from the Kudankulam plant, which will enhance the region’s electricity supply.

KISTSTL was incorporated on June 28, 2024, by PFC Consulting Limited (PFCCL), the Bid Process Coordinator. Before the acquisition, POWERGRID had no interest in KISTSTL, making this acquisition a standalone deal. The regulatory approvals for the acquisition were granted in line with the Ministry of Power’s guidelines on transmission projects, and after the acquisition, KISTSTL will seek approvals from the Central Electricity Regulatory Commission (CERC) for the transmission license and adoption of transmission charges.

The acquisition was completed for an aggregate value of around ₹7.44 Crore, which includes 10,000 equity shares at par value of ₹10 each, along with the assets and liabilities of KISTSTL as on the acquisition date. The acquisition price is subject to adjustments based on the audited accounts of KISTSTL. With this acquisition, POWERGRID now owns 100% of KISTSTL, which will operate as a step-down subsidiary.

KISTSTL, which has not yet commenced commercial operations, has no turnover in the past three years, as it is still in the development phase. Once operational, KISTSTL will focus on transmitting power from Kudankulam, playing a key role in India’s growing energy infrastructure. The transmission system is expected to help meet the increasing energy demands in the region while supporting India’s efforts to enhance its power transmission network.