PFC Consulting Limited (PFCCL), a wholly owned subsidiary of Power Finance Corporation, has formally issued a Request for Proposal (RFP) to select a Transmission Service Provider (TSP) for the development of a significant inter-state transmission project. This project is designed to integrate an additional 2.7 GW of renewable energy (RE) capacity at Tumkur-II in Karnataka.
The project, announced by the Ministry of Power via a Gazette Notification dated August 19, 2025, will be executed under the Tariff-Based Competitive Bidding (TBCB) framework, in accordance with Section 63 of the Electricity Act, 2003. PFCCL has been appointed as the Bid Process Coordinator (BPC) for this initiative.
The proposed transmission system is designed to enhance both efficiency and reliability through several key upgrades. First, the Tumkur-II Pooling Station (400/220 kV) will be upgraded in two phases, with the addition of six new 500 MVA ICTs. A new 400 kV double-circuit (Quad) transmission line will also be constructed to connect Tumkur-II to Madhugiri. To improve voltage stability and overall grid reliability, a ±300 MVAr STATCOM will be installed at Tumkur-II. Additionally, six new 220 kV line bays will be added to facilitate connections from dedicated renewable energy developers. In support of the STATCOM installation, additional land will be acquired to accommodate the necessary facilities. The scheduled Commercial Operation Date (COD) for the completion of all components is 24 months from the effective date.
The RFP describes a single-stage, two-envelope bidding process conducted via MSTC’s electronic platform. Financial bids will be subjected to a reverse e-auction, where the lowest quoted annual transmission charges will determine the winning bid. To be eligible, bidders must possess significant technical expertise in infrastructure project development or construction, along with a minimum net worth of ₹290 crore.
The selected bidder will acquire 100% equity in TUMKUR II RE Transmission Limited, a special purpose vehicle established specifically for this project. The TSP will be responsible for the construction, ownership, and operation of the assets. After 35 years, the assets will be transferred to the Central Transmission Utility (CTU) at no cost.
The RFP purchase window will be open from November 19, 2025, to January 23, 2026. Bids must be submitted by the deadline of January 22, 2026, at 15:00 hrs IST. The bid opening will take place on the same day, January 22, 2026, at 15:30 IST. Interested bidders are required to submit a non-refundable fee of ₹5 lakh (or $7,000) along with the execution of a mandatory Pre-Award Integrity Pact.
India’s goal of reaching 500 GW of non-fossil fuel capacity by 2030 makes this project a key milestone in enhancing transmission capacity in the southern region. This is especially crucial for Karnataka, which is rapidly establishing itself as a major hub for renewable energy.
