"IndiGrid Partners with Norwegian Climate Investment Fund, Others for Transmission Projects in India"

Power sector infrastructure investment trust IndiGrid announced that it has formed strategic partnerships with British International Investment (BII), the Norwegian Climate Investment Fund, and Techno Electric and Engineering Company to develop greenfield Interstate Transmission System (ISTS) projects across India.
During the fiscal year 2024, IndiGrid successfully operationalized its first greenfield ISTS project, Kallam Transmission, and secured five additional projects in both ISTS and Battery Energy Storage Systems (BESS). These projects represent a tentative capital expenditure of approximately ₹2,000 crore, which is set to be deployed over the next 12-24 months.
As part of this collaboration, BII and Norfund (through KNI India AS, Norfund’s joint venture with KLP, Norway’s largest pension company) will invest in three of IndiGrid’s ISTS projects won last year, which are currently under construction. These projects include Ishanagar Power Transmission (IPTL), Dhule Power Transmission (DPTL), and Kallam Transco (KTCO). The projects aim to support the evacuation of around 6 gigawatts (GW) of renewable energy in the states of Madhya Pradesh and Maharashtra.
Additionally, Techno Electric and Engineering Company will co-develop the IPTL and DPTL projects. Techno will contribute minority capital and will be responsible for the complete execution of these projects on a Lump Sum Turnkey (LSTK) basis. IndiGrid plans to acquire full ownership of these projects once they become operational and start generating revenue.
Rohit Anand, Head of Infrastructure Equity, Asia at British International Investment, emphasized the importance of this initiative, stating, “India requires a substantial investment of ₹4.75 lakh crore in the transmission sector to facilitate the integration of renewable energy capacities and meet its decarbonization goals. As a long-term partner and committed climate finance provider to India, we are delighted to bring not just our capital but also our ESG expertise to support the transmission sector, which is a vital part of India’s energy transition.”
IndiGrid CEO Harsh Shah highlighted the growth potential, saying, “On the back of India’s commitment to energy transition and grid parity across renewable energy technologies, including BESS, we are witnessing tremendous investment opportunities in our target areas. This offers a compelling prospect for investors with a preference for sustainability.”
HBL