The Central Electricity Regulatory Commission (CERC) has granted an inter-state transmission license to POWERGRID Bellary Davanagere Transmission Limited, paving the way for a major transmission infrastructure project aimed at strengthening renewable energy evacuation in Karnataka. The approval is expected to support the integration of additional renewable energy generation capacity in the Davanagere and Bellary regions and contribute to the expansion of India’s clean energy network.
The order was issued by a four-member bench of the Commission led by Chairperson Jishnu Barua along with Members Ramesh Babu V., Harish Dudani, and Ravinder Singh Dhillon. The project has been planned to enhance transmission capabilities required for the growing renewable energy sector in southern India.
POWERGRID Bellary Davanagere Transmission Limited, a wholly owned subsidiary of Power Grid Corporation of India Limited, secured the project through a tariff-based competitive bidding process. The bidding process was coordinated by REC Power Development and Consultancy Limited, which acted as the bid process coordinator. Power Grid Corporation emerged as the successful bidder after quoting the lowest annual transmission charges of Rs. 1,300 million.
The transmission project will be implemented on a Build, Own, Operate and Transfer (BOOT) basis and is scheduled to be completed within 24 months. Once commissioned, it will facilitate the evacuation of an additional 0.25 GW of renewable energy from the Davanagere region and 2.75 GW from the Bellary region.
The scope of work includes major upgrades at existing substations and the construction of new transmission infrastructure. At the Davanagere substation, two 1500 MVA, 765/400 kV Inter-Connecting Transformers (ICTs) will be installed along with the required 765 kV and 400 kV bays. At the Bellary substation, six 500 MVA, 400/220 kV ICTs will be added, supported by dedicated line bays to accommodate renewable energy developer connections.
A key component of the project is the construction of the Bellary–Davanagere second 400 kV double-circuit transmission line, which will strengthen connectivity between the two major power hubs. As per the project requirements, the transmission service providers at both substations are required to provide the necessary physical space for these developments free of cost.
Before granting the license, CERC followed the mandatory public consultation process. A public notice was issued on May 9, 2026, and published in leading newspapers, including Hindustan Times and Hindustan. The Commission noted that no objections or suggestions were received from stakeholders or the public during the consultation period.
The Central Transmission Utility of India Limited (CTUIL) had also recommended the grant of the license, confirming that the company fulfilled all requirements under the Electricity Act, 2003, and the Transmission License Regulations, 2024.
The transmission license will remain valid for 25 years. Under the license conditions, the company is not permitted to undertake electricity trading activities and must award all engineering, procurement, and construction contracts through competitive bidding. The Central Electricity Authority and CTUIL will continue to monitor the project’s implementation to ensure compliance with technical standards and scheduled timelines.
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