POWERGRID Invites Bids for Green Hydrogen Power Evacuation Infrastructure in Andhra Pradesh

Background and Context

As India accelerates its National Green Hydrogen Mission, the demand for robust power evacuation infrastructure has become a primary bottleneck. To address this, the Power Grid Corporation of India (POWERGRID) has initiated a strategic move to develop an Interstate Transmission System (ISTS) specifically designed to support green hydrogen and green ammonia production hubs in Visakhapatnam, Andhra Pradesh. These tenders represent a pre-bid tie-up arrangement, meaning the successful consortium partners will be onboarded by POWERGRID contingent upon the state-run utility winning the upstream tender floated by REC Power Development Consultancy.

Key Details

The project is divided into two distinct packages with a completion timeline of 27 months. The first package covers the Khammam-II–Pendurthi 765 kV (Part I) and Khammam-II–Khammam 400 kV transmission lines, with a bid deadline of April 7, 2026. The second package focuses on the Khammam-II–Pendurthi 765 kV (Part II) line, with a deadline of April 6, 2026.

The scope of work is comprehensive, encompassing detailed route alignment, soil resistivity measurement, geotechnical investigations, and the fabrication and supply of transmission towers. Contractors are also responsible for the supply of critical materials, including AL59 Zebra and Moose conductors, insulators, optical ground wire (OPGW), and associated hardware fittings. Eligibility criteria are stringent: bidders must have completed at least one transmission line project of 100 km or more at 345 kV double-circuit or higher voltage in the last seven years. Financial requirements include a minimum average annual turnover of ₹2.97 billion (~$31.58 million) and liquid assets of at least ₹494.4 million (~$5.25 million).

What This Means for EPCs and Developers

For EPC contractors, these tenders represent a high-value entry point into the emerging green hydrogen infrastructure sector. The technical requirements necessitate high-level expertise in 765 kV transmission systems, favoring established players with proven track records in large-scale grid connectivity. Developers of green hydrogen projects in the Visakhapatnam region should monitor these developments closely, as the timely execution of this transmission backbone is essential for the commercial viability and power supply security of their upcoming hydrogen and ammonia facilities.

What Happens Next

The immediate next step is the submission of bids in early April 2026. However, the ultimate progression of these contracts depends on the outcome of the upstream tender managed by REC Power Development Consultancy. Once the upstream tender is awarded to POWERGRID, the selected consortium partners will move to the execution phase, beginning with detailed survey activities and tower spotting. Stakeholders should track the REC tender results, as they will serve as the definitive green light for the commencement of work on these transmission corridors.