Adani Energy Solutions Ltd (AESL) has acquired a 100% stake in Vizag Power Transmission Ltd (VPTL) from REC Power Development and Consultancy Ltd (RECPDCL), completing the transfer of the project-specific transmission SPV on August 14, 2026.
The acquisition gives AESL control of the special purpose vehicle created for the “Transmission System for Proposed Green Hydrogen / Green Ammonia Projects in Vizag Area, Andhra Pradesh (Phase-I)”, an inter-state transmission project with an estimated value of around ₹8,500 crore.
The project was awarded to AESL through the Government of India’s Tariff-Based Competitive Bidding (TBCB) framework, under which the company emerged as the most competitive bidder. AESL had announced the project win in July 2026.
VPTL was incorporated by RECPDCL specifically to hold and facilitate the transmission project during the competitive-bidding process. REC’s original disclosure said the SPV would subsequently be transferred to the successful bidder along with its assets and liabilities after completion of the TBCB process. The company was incorporated with an authorised and paid-up share capital of ₹5 lakh each and had not commenced business at the time of incorporation.
Transmission system to support 4,500 MW demand
The underlying transmission system is planned primarily to facilitate the integration and supply of electricity to proposed green hydrogen and green ammonia projects in the Vizag region, which are expected to create an estimated power demand of around 4,500 MW.
The project will also support growing electricity requirements in the Pendurthi–Vizag region, where AESL has identified increasing activity in data centres and digital infrastructure.
The planned infrastructure includes a 4×1,500 MVA, 765/400 kV GIS substation at Pendurthi, Vizag, along with a 3×1,500 MVA, 765/400 kV substation at Khammam-II.
Once implemented, the project will add approximately 1,582 circuit kilometres (ckm) of transmission lines and 10,500 MVA of transformation capacity to AESL’s transmission portfolio. The company said the addition would take its overall transmission network to 29,531 ckm, with total transformation capacity reaching 1,33,675 MVA.
From REC’s project SPV to AESL
The transaction represents the next stage of the TBCB project structure. RECPDCL, a subsidiary of REC Limited, acts as the Bid Process Coordinator (BPC) for such transmission projects. It initially incorporates a project-specific SPV, which is subsequently transferred to the successful bidder after the competitive bidding process.
In this case, that successful bidder is AESL, which will now take forward the Vizag transmission project through VPTL.
The project is contracted to be delivered within 30 months. AESL’s project announcement also said the order takes its transmission order book beyond ₹80,000 crore.
Supporting Vizag’s emerging power demand
The project comes as Vizag’s power requirements are expected to expand beyond conventional industrial demand. AESL has pointed to the development of green hydrogen and green ammonia production as well as data-centre and digital infrastructure investments in the Pendurthi–Vizag region.
For the proposed green hydrogen and green ammonia projects, high-capacity transmission infrastructure will be required to bring reliable electricity to the emerging production ecosystem. At the same time, the additional network is expected to strengthen grid infrastructure for other large electricity consumers in the region.
Kandarp Patel, CEO, Adani Energy Solutions Ltd., said, “The Vizag transmission project is an important step in building the energy backbone for India’s next generation of industrial growth. It will support the development of green hydrogen and green ammonia capacity in Andhra Pradesh, while also strengthening the grid for emerging digital infrastructure demand in the Pendurthi–Vizag region. As India advances towards a cleaner, more technology-driven economy, AESL remains committed to developing resilient, future-ready transmission networks that enable sustainable growth at scale.”
The ₹8,500-crore figure refers to the underlying transmission project announced by AESL, not the consideration paid by AESL to acquire VPTL. The acquisition disclosure does not establish ₹8,500 crore as the purchase price, so it should not be presented as the acquisition value.
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