IndiGrid, India’s largest power transmission invIT (Infrastructure Investment Trust), has announced the formation of a $300 million platform to focus on transmission and battery storage projects. The platform, named IndiGrid 2, aims to develop and acquire greenfield and brownfield transmission and battery storage assets across India. This move is in line with the Indian government’s ambitious plans to enhance the country’s power transmission infrastructure and promote renewable energy.
IndiGrid 2 will be seeded with two transmission projects, including the recently acquired Raipur-Rajnandgaon-Warora Transmission Project. The platform will also explore opportunities in battery storage, which is critical for ensuring grid stability and facilitating the integration of renewable energy.
“IndiGrid 2 is a significant milestone in our journey to create a leading power transmission and renewable energy platform,” said Harsh Shah, CEO of IndiGrid. “We are committed to supporting India’s energy transition and providing sustainable returns to our investors.”
The $300 million platform will be funded through a combination of debt and equity. IndiGrid plans to leverage its strong relationships with lenders and investors to secure funding at competitive rates. IndiGrid’s existing portfolio comprises 14 power transmission projects, with a total asset base of over ₹14,000 crore. The company has consistently demonstrated its ability to deliver stable returns to investors, with a dividend yield of over 7%.
The formation of IndiGrid 2 is expected to further enhance the company’s growth prospects, driven by increasing demand for power transmission infrastructure and renewable energy. India’s power transmission sector is poised for significant growth, with the government targeting an investment of $50 billion by 2025.
As it expands its presence in the transmission and battery storage space, the company is well-positioned to benefit from India’s energy transition. With its strong track record and commitment to sustainability, it is likely to remain a preferred partner for investors and stakeholders in the power transmission sector.
IndiGrid is India’s first Infrastructure Investment Trust (InvIT) in the power sector. It holds a diverse portfolio of 41 power projects, including 49 transmission lines spanning approximately 8,700 circuit kilometers, 15 substations with a total transformation capacity of around 22,550 MVA, and nearly 855 MWAC (approximately 1.1 GWp) of solar power generation capacity. With assets under management (AUM) totaling approximately ₹297 billion (around USD 3.5 billion), it is a leading player in the energy infrastructure sector. The investment manager of the company is entirely owned by KKR.
