POWERGRID Bags Key Transmission Project In Karnataka SEBI RA Pegs Support At ₹265

Power Grid Corporation of India (POWERGRID) has secured a significant transmission project to boost renewable energy integration in Karnataka. On Thursday, the company received a Letter of Intent (LoI) from REC Power Development & Consultancy (RECPDCL) to develop an Inter-State Transmission System (ISTS).

The project scope includes installing four 500 MVA, 400/220 kV interconnecting transformers at the Davanagere pooling station, augmenting capacity with a 1,500 MVA, 765/400 kV ICT at Davanagere/Chitradurga, and setting up two additional 220 kV line bays for renewable energy sources. 

Executed under the Build, Own, Operate, and Transfer (BOOT) model, POWERGRID will undertake engineering, procurement, construction, financing, commissioning, and operate and maintain the facility for a period of 35 years. The commercial operation date is targeted within 24 months.

Technical Outlook

Power Grid's stock price is currently trading within a defined range, with resistance between ₹321 and ₹325 and support between ₹265 and ₹270, said SEBI-registered A & Y Market Research.

The strategy is to wait for the price to approach the support zone at ₹265 - ₹270 and then observe the market reaction, they added. If the price remains at this level, a potential reversal could occur.

However, if the support breaks, the stock may decline further toward the next support level at ₹247 should closely monitor these levels to determine the next course of action.

The stock closed 2% lower at ₹274.2. It has shed nearly 12% year-to-date (YTD).

However, retail sentiment on Stocktwits remains 'bullish'. It was 'neutral' a week earlier.

Long-term Prospects

The win adds to POWERGRID's growing portfolio of interstate transmission projects secured under Tariff-Based Competitive Bidding (TBCB) and BOOT models. Earlier this year, it won major contracts in Rajasthan, Gujarat, Andhra Pradesh, and Karnataka, covering renewable evacuation for nearly 8.5 GW of capacity.

From an investor standpoint, the recent 2% dip appears to be a short-term reaction. However, long-term fundamentals remain strong, supported by policy tailwinds, steady revenue visibility from BOOT projects, and the company's leadership in green energy infrastructure.

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