Power Grid Corporation of India Ltd. on Thursday announced that it has bagged the contract for an inter-state transmission project in Gujarat.
The project will be based in the Khavda area, located in the state's Kutch district, the central public sector undertaking said in an exchange filing.
The company was "declared as the successful bidder under tariff-based competitive bidding to establish the inter-state transmission system," the filing added.
The project has been awarded on a "build, own, operate and transfer" basis, it further noted.
The project would comprise the establishment of a new substation and "associated bay extension works at other existing substations in Gujarat," Power Grid said, adding that it has received the letter of intent.
The development comes a day after Power Grid bagged an inter-state transmission project for "evacuation of power from Rajasthan REZ Phase IV."
Notably, Power Grid serves as the central transmission utility of India. The central government owns a 51.34% stake in the company, which has been accorded with the 'Maharatna' PSU status.
In the quarter ended June 2024, Power Grid had reported a 3.5% year-on-year rise in consolidated net profit to 3,724 crore. Its revenue from operations grew 0.4% YoY to Rs 11,006 crore.
The company's shares on Thursday closed 0.18% higher at Rs 334.9 on the NSE, compared to a 0.15% rise in the benchmark Nifty 50. Year-to-date, the stock has climbed 41.1%.
Ten out of the 20 analysts tracking the company have a 'buy' rating on the stock, two suggest a 'hold' and eight have a 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 2.8%.
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