Velgaon Power Transmission Limited has approached the Maharashtra Electricity Regulatory Commission seeking an intra-state transmission license for a major infrastructure project in the Mumbai Metropolitan Region. The move is seen as an important step to strengthen the region’s power network and improve reliability amid rising electricity demand.
The proposed project focuses on setting up a 400/220 kV Gas Insulated Substation (GIS) at Velgaon. This new facility is planned to act as an additional power source for Mumbai, especially during times when local generation is not sufficient. The project aims to ease existing loading constraints and ensure a stable electricity supply across the region. It will include the installation of three 500 MVA transformers along with multiple transmission line bays. The development is being executed under the Build, Own, Operate, and Transfer (BOOT) model.
The project was first approved in early 2025 by the Empowered Committee. Following this, the Government of Maharashtra appointed REC Power Development and Consultancy Limited as the Bid Process Coordinator to oversee the selection of a transmission developer. To facilitate initial project development, Velgaon Power Transmission Limited was created as a wholly-owned subsidiary of RECPDCL.
An international competitive bidding process was carried out, including an e-reverse auction in July 2025. Ceigall India Limited emerged as the successful bidder by quoting a levelized annual transmission charge of INR 585 million. After winning the bid, the company acquired full ownership of Velgaon Power Transmission Limited through a Share Purchase Agreement signed in January 2026.
Alongside the bidding process, key administrative and regulatory steps were completed. RECPDCL initiated the process for land allocation of around 15 acres in Palghar for setting up the substation. The Government of Maharashtra also granted approval under the Electricity Act for the construction of overhead transmission lines, highlighting the importance of the project in meeting growing energy needs.
The project has now entered the execution phase following the signing of a Transmission Service Agreement with Maharashtra State Electricity Transmission Company Limited. The system is scheduled to be commissioned by January 9, 2028, marking a 24-month implementation timeline from the effective date of the agreement.
Once completed, the Velgaon transmission project is expected to play a key role in enhancing grid stability, increasing transmission capacity, and ensuring a more reliable power supply for Mumbai and surrounding areas.
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