Estimated cost of the project is around Rs. 366.26 Crore
REC Power Development and Consultancy Limited (RECPDCL), a wholly owned subsidiary of REC Limited, the Maharatna Central Public Sector Undertaking (CPSU) under the Ministry of Power, has officially handed over the Special Purpose Vehicle (SPV) Davanagere Power Transmission Limited to Power Grid Corporation of India Limited (PGCIL). This SPV is part of an Inter-State Transmission System (ISTS) project awarded through the Tariff-Based Competitive Bidding (TBCB) route.
Power Grid Corporation of India Limited, India’s leading power transmission utility, emerged as the successful Transmission Service Provider (TSP) through a transparent and competitive bidding process conducted by RECPDCL, which acted as the Bid Process Coordinator. The project will be developed on a Build, Own, Operate, and Transfer (BOOT) basis, ensuring cost efficiency and timely execution.
The official handover took place on 24th September 2025, where Shri T.S.C. Bosh, Chief Executive Officer of RECPDCL, formally transferred the SPV documents to Shri Arup Kumar Samanta, Senior Deputy General Manager, Company Secretariat, PGCIL. The ceremony was attended by senior officials from RECPDCL, Power Grid Corporation of India Limited, and Central Transmission Utility of India Limited, marking another significant milestone in the government’s efforts to strengthen India’s transmission infrastructure.
The Davanagere Power Transmission Project has been designed to enhance the reliability and capacity of the regional grid. The project scheme involves augmentation of transformation capacity at Davanagere Power Station with the installation of 1×1500 MVA 765/400 kV Interconnecting Transformer (ICT) and 4×500 MVA 400/220 kV ICTs, along with associated 220 kV line bays. These installations will play a critical role in managing the increasing power demand, ensuring grid stability, and facilitating smoother power flow across southern India.
With an estimated cost of Rs. 366.26 crore, the project has been given an implementation period of 24 months from the date of handover. Once completed, it is expected to significantly boost transmission capacity in the region, improve voltage stability, and provide reliable power supply to industries, businesses, and households.
This handover reflects RECPDCL’s growing role as a trusted bid process coordinator and consultancy arm in the power sector, while reaffirming PGCIL’s leadership position in developing and managing large-scale transmission projects across the country. The initiative is in line with the Ministry of Power’s vision to modernize and expand the national grid to support India’s economic growth and energy transition goals.
The project is also expected to contribute to integrating renewable energy into the grid, as Karnataka and neighboring states continue to scale up their renewable power generation capacities. By improving transmission infrastructure, the scheme will help reduce bottlenecks, minimize transmission losses, and ensure the efficient delivery of clean and affordable electricity to consumers.
This development marks another step forward in India’s mission to build a robust, future-ready power transmission network, essential for achieving the nation’s growing energy and sustainability targets.
