New Delhi : Power Finance Corporation Limited (PFC) has announced the incorporation of Benchigere Transmission Limited, a wholly owned subsidiary of PFC Consulting Limited (PFCCL), to facilitate the development of a 400 kV Benchigere Transmission System in Tumakuru district, Karnataka. The move represents an important milestone in strengthening the state’s transmission infrastructure and supporting India’s growing electricity demand through a competitive and transparent project development process.
PFC Consulting Limited (PFCCL), itself a wholly owned subsidiary of PFC, has established the Special Purpose Vehicle (SPV) to undertake preliminary activities before the transmission project is awarded to a private developer through Tariff-Based Competitive Bidding (TBCB).
Purpose of the New Special Purpose Vehicle
The newly incorporated Benchigere Transmission Limited has been created specifically to carry out preparatory work necessary for implementing the proposed 400 kV transmission system.
The SPV will be responsible for facilitating the early stages of project development, enabling the selected developer to begin construction after the competitive bidding process is completed.
Its establishment is part of the standard project development framework adopted by the Ministry of Power for major interstate and intrastate transmission projects.
PFCCL Appointed as Bid Process Coordinator
PFC Consulting Limited (PFCCL) has been designated as the Bid Process Coordinator (BPC) for the project.
As the BPC, PFCCL will oversee the competitive bidding process and undertake several essential pre-construction activities, including:
- Technical and route surveys
- Preparation of Detailed Project Reports (DPRs)
- Initial land acquisition processes, where required
- Processing of forest clearances
- Coordination with state authorities and stakeholders
- Preparation of bid documents for developer selection
These activities are intended to ensure that the project progresses efficiently and that the successful bidder receives a well-prepared project for implementation.
Transfer to the Successful Developer
Following completion of the preparatory work, Benchigere Transmission Limited will be transferred to the successful bidder selected through an International Competitive Bidding process conducted under the Ministry of Power’s Tariff-Based Competitive Bidding framework.
The selected transmission developer will then assume responsibility for:
- Project financing
- Engineering and design
- Construction
- Commissioning
- Operation and maintenance of the transmission system
This model has become a widely adopted mechanism for developing India’s modern power transmission infrastructure through private sector participation.
Government Approval and Project Background
The project has received formal backing from the State Empowered Committee on Transmission (SECT).
During its seventh meeting held on August 29, 2025, the committee ratified the nomination of PFCCL by the Karnataka Power Transmission Corporation Limited (KPTCL) to serve as the Bid Process Coordinator.
Subsequently, the Energy Department of the Government of Karnataka conveyed its approval through a Government Order dated October 18, 2025, enabling PFCCL to proceed with project development activities.
The incorporation of the SPV is therefore an important administrative and operational step toward implementing the proposed transmission infrastructure in Karnataka.
Strengthening Karnataka’s Power Network
The proposed 400 kV Benchigere Transmission System is expected to enhance the reliability and efficiency of electricity transmission in Tumakuru district and surrounding regions.
Key anticipated benefits include:
- Improved grid reliability
- Enhanced power evacuation capacity
- Better integration of conventional and renewable energy sources
- Strengthened transmission infrastructure for future demand growth
- Increased operational efficiency of the regional power network
The project also aligns with India’s broader objective of expanding and modernizing its national transmission system to support rapid economic growth and clean energy integration.
Supporting India’s Energy Infrastructure
The incorporation of Benchigere Transmission Limited reflects the continued emphasis by Power Finance Corporation and PFCCL on developing robust transmission infrastructure through transparent and competitive project implementation mechanisms.
By preparing projects through dedicated SPVs before developer selection, PFCCL helps accelerate project execution while reducing implementation risks and ensuring greater efficiency in the bidding process.
International Perspective
Commenting on the development, Michael Anderson, an American power transmission specialist, said:
“Creating dedicated Special Purpose Vehicles before project bidding is an effective approach for large transmission infrastructure projects. It allows essential surveys, regulatory approvals, and project planning to be completed in advance, reducing execution risks and enabling faster construction once the developer is selected.“
Meanwhile, Jennifer Collins, a U.S.-based energy infrastructure consultant, observed:
“Modern transmission networks are fundamental to economic growth and renewable energy integration. Competitive bidding combined with thorough project preparation improves transparency, attracts experienced developers, and helps deliver reliable electricity infrastructure more efficiently.“
Key Highlights
- Power Finance Corporation (PFC) has incorporated Benchigere Transmission Limited, a wholly owned subsidiary of PFC Consulting Limited (PFCCL), to facilitate the development of a 400 kV transmission system in Tumakuru district, Karnataka.
- PFCCL, acting as the Bid Process Coordinator (BPC), will undertake preparatory activities including technical surveys, Detailed Project Reports, land acquisition processes, and forest clearances, where required.
- The Special Purpose Vehicle (SPV) will be transferred to the successful developer selected through an International Tariff-Based Competitive Bidding (TBCB) process under the Ministry of Power’s framework.
- The project received approval from the State Empowered Committee on Transmission (SECT) following the nomination of PFCCL by Karnataka Power Transmission Corporation Limited (KPTCL), with subsequent approval from the Government of Karnataka’s Energy Department.
- The proposed transmission system is expected to strengthen Karnataka’s electricity transmission network, improve grid reliability, enhance power evacuation capacity, and support the integration of future energy infrastructure across the region.
