Power Grid Corporation shares rise following the award of an inter-state transmission project

Power Grid Corporation of India has seen its share price increase after the company received a letter of intent (LoI) for the establishment of an inter-state transmission system. If you're looking to invest, this may be a good opportunity to buy shares online. At 09:33 am, Power Grid Corporation shares were trading at ₹344.15, reflecting an increase of ₹3.10 or 0.91 percent on the BSE.

Successful bidder announcement

The company emerged as the successful bidder in a tariff-based competitive bidding process to set up dynamic reactive compensation systems at both Khavda Pooling Station 1 (KPS1) and Khavda Pooling Station 3 (KPS3). This project is based on a build, own, operate, and transfer (BOOT) model, indicating a long-term commitment to infrastructure development.

Project scope

The project will involve the installation of STATCOMs at the Khavda pooling stations, along with essential bay extension work in Gujarat. Additionally, Power Grid Corporation has also been awarded another inter-state transmission project that includes establishing a new 765/400/220kV gas insulated switchgear (GIS) sub-station at a suitable location near South of Olpad, Gujarat. This encompasses the construction of 765kV and 400kV double-circuit transmission lines and associated bay extension works at existing substations in the region.

Furthermore, the company has been recognised as the successful bidder for an inter-state transmission system aimed at establishing a new 765/400/220kV substation at Kurawar, Madhya Pradesh. This project will also include the installation of 765kV and 400kV double-circuit transmission lines, along with associated bay extension works.

Augmentation of transformation capacity

In addition, Power Grid Corporation won competitive bidding for augmenting transformation capacity at the Jam Khambhaliya pooling station (GIS) on a BOOT basis. This augmentation project includes enhancing transformation capacity and associated bay extension works at existing substations within Gujarat.

Stock performance

Power Grid shares have shown remarkable resilience, hitting a 52-week high of ₹362.30 and a low of ₹193.80 on 1 August 2024 and 9 October 2023, respectively. Currently, the stock is trading approximately 5.01 percent below its 52-week high and 77.58 percent above its 52-week low. This significant performance has contributed to a more than 70 percent increase in the share price over the past year, making it an attractive option for those looking to buy shares online.

Conclusion

As Power Grid Corporation continues to secure significant projects, investor confidence appears to be strong. The successful bidding for multiple inter-state transmission projects highlights the company's growing role in enhancing India's power infrastructure. If you're considering investing in stocks, now may be the ideal time to buy shares online, taking advantage of the positive momentum in Power Grid Corporation's stock performance.