India’s largest private transmission and distribution company Adani Energy Solutions (AESL) has secured a 8,500 crore ($1 billion) contract to develop a major interstate electricity transmission project in the Indian state of Andhra Pradesh, supporting planned green hydrogen developments and growing demand from digital infrastructure.
The project was awarded through the Indian government’s Tariff-Based Competitive Bidding (TBCB) process, with AESL chosen as the preferred bidder.
Designed to support an estimated 4,500MW of electricity demand, the transmission network will provide power to planned green hydrogen and green ammonia production facilities in the Vizag region.
It will also reinforce the grid to meet increasing demand from the nearby Pendurthi–Vizag corridor, where investment in data centres and other digital infrastructure is accelerating.
The project is scheduled for completion within 30 months. It includes the construction of a 765/400kV gas-insulated substation at Pendurthi equipped with four 1,500MVA transformers, alongside a second 765/400kV substation at Khammam-II with three 1,500MVA transformers.
New capacity
AESL will also build 1,582 circuit kilometres (Ckm) of transmission lines and install 10,500MVA of new transformation capacity. Once completed, the company’s national transmission portfolio will expand to 29,531Ckm with a total transformation capacity of 133,675MVA.
Putting this award into context, AESL’s chief executive Kandarp Patel explained: “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.”
Vizag is becoming one of India’s new digitally significant infrastructure locations, supported by AI and hyperscale data centre developments, planned subsea connectivity and associated logistics, clean energy and industrial infrastructure.
As green hydrogen and data centres scale up in the region, reliable high-capacity transmission infrastructure will be critical.
