Power Grid Edges Higher After Winning Sonbhadra Transmission Project Bid

Mumbai, September 5, 2025: The shares of the PSU Power Grid Corporation of India Ltd (NSE: POWERGRID, BSE: 532898) edged higher by slightly more than 1.30% on Friday afternoon after the company announced that it bagged a key interstate power evacuation project in Sonbhadra district, Uttar Pradesh. The company has not disclosed the value of the project but has mentioned that it relates to the development of a transmission system for the evaluation of power from pumped storage projects in the district, as per its regulatory filing. The project will be executed on a BOOT basis (Build, Own, Operate, and Transfer).

Stock Surges to ₹285.45 on Project Announcement, Hits Intraday High ₹286.65

The investors reacted positively to the development as the stock surged to ₹285.45 at 01:30 PM (1.30% higher than the previous day’s closing price). The stock was up by more than 1.70 when it reached the intraday high of ₹286.65. The day’s low has been ₹282.35. The trade volume has been slightly over 66.80 lakh shares. The company’s PE ratio is 17.00 compared to the industrial average of close to 21.90. After today’s surge, the stock has risen by close to 11% in the past six months.

Sonbhadra Project to Add 765/400 kV Substation, Boost Grid Reliability

The Sonbhadra Transmission Project aims to strengthen Uttar Pradesh’s power infrastructure significantly. Its scope includes the establishment of a new 765/400 kV pooling substation, which will enhance transmission capacity and reliability in the region. Additionally, the project covers bay extension works at upcoming substations to support grid integration. Complementing these measures, the development of associated 765 kV transmission lines across the state will help ensure efficient power distribution, reduce transmission losses, and support growing electricity demand.

Power Grid’s Sonbhadra project reinforces Uttar Pradesh’s electricity infrastructure, highlighting its role in enhancing transmission capacity and reliability. The establishment of high-capacity substations and 765 kV lines is set to improve power distribution efficiency and reduce losses. The project execution on a BOOT basis reflects strategic planning for sustainable infrastructure development and long-term operational management.

REF: https://nsearchives.nseindia.com/corporate/POWERGRID1_05092025090448_LoISonbhadra.pdf

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