IndiGrid Partners with Global Investors to Enhance India's Power Transmission

IndiGrid, an Indian power sector infrastructure investment trust (InvIT), sponsored by global investment firm KKR and Sterlite Power (SPTL), has partnered with three prominent investors to jointly develop its interstate transmission system (ISTS) projects.

These investors include British International Investment (BII), the development finance institution of the UK government; the Norwegian Climate Investment Fund, managed by Norfund; and India’s own Techno Electric and Engineering Company Ltd.

With this collaboration, IndiGrid, a major player in India’s power transmission sector, with this collaboration, aims at channelling investments into three key power transmission projects viz. Ishanagar Power Transmission Ltd (IPTL), Dhule Power Transmission Ltd (DPTL), and Kallam Transco Ltd (KTCO). These projects, which are currently under construction and were secured by IndiGrid in the previous year, are crucial to the country’s energy infrastructure. They are expected to facilitate the evacuation of up to 6 GW of renewable energy in the Indian states of Madhya Pradesh and Maharashtra.

This initiative is vital for bolstering the capacity and reliability of India’s power transmission network, particularly in the integration of renewable energy sources into the national grid. BII and Norfund, both of which play significant roles in the global development finance sector, will route their investments through KNI India AS. KNI India AS is a joint venture between Norfund and KLP, Norway’s largest pension company.

This partnership highlights the growing international interest and confidence in India’s energy transition, particularly in the development of sustainable and renewable energy infrastructure. Techno Electric, a well-established player in India’s power sector, will take on the role of co-developer for the IPTL and DPTL projects.

The company will invest minority capital in these projects and will be responsible for their complete execution on a lump sum turnkey basis. This means that Techno Electric will handle all aspects of the project, from inception to completion, at a pre-determined price, ensuring both cost certainty and efficiency in project delivery.

Once these transmission projects are operational and begin generating revenue, IndiGrid plans to acquire the entire stake in these assets, fully integrating them into its portfolio. This approach aligns with IndiGrid’s broader strategic goal of expanding its asset base and strengthening its operational capabilities within the power transmission sector. In the last fiscal year (FY24), IndiGrid marked a major milestone by operationalising its first greenfield ISTS project, Kallam Transmission Limited.

Additionally, IndiGrid won five more projects across ISTS and battery energy storage systems, with a projected capital expenditure of INR 2,000 crore to be deployed over the next 12-24 months.

Harsh Shah, CEO and Whole-Time Director of IndiGrid, highlighted the significant investment opportunities arising from India’s commitment to energy transition and grid parity across renewable energy technologies, including Battery Energy Storage Systems (BESS). Shah noted that these developments offer compelling prospects for investors who prioritize sustainability and are keen to contribute to India's clean energy future.

This partnership represents a pivotal step forward for IndiGrid as it continues to play a crucial role in modernising India’s power transmission infrastructure, aligning with the country’s ambitious renewable energy targets.