Delay Announced for India's Pang-Kaithal VSC HVDC Tender
he tender process for India’s Pang-Kaithal (Ladakh) VSC HVDC transmission project has been delayed by several months, according to the latest statements from Power Grid Corporation of India Ltd (PGCIL) leadership. This postponement, attributed to both technical and supplier-related challenges, reflects the complexity of constructing HVDC infrastructure at high altitudes and under environmental constraints.
The Pang-Kaithal HVDC project is a core component of the Green Energy Corridor Phase-II and the government’s 13GW Ladakh renewable integration drive, intended to connect the vast solar and wind resources of Ladakh to load centers in north India. The transmission system will feature multiple ±350kV VSC-based HVDC terminals at Pang (Ladakh, 4,700m altitude) and Kaithal (Haryana) and it will span approximately 480km of overhead line. A planned 12GWh battery energy storage system (BESS) will further enhance transmission utilization and reliability.
During PGCIL’s Q1FY26 investor conference on August 6, Chairman and Managing Director R.K. Tyagi confirmed that the awarding of contracts will be deferred by at least three months, adjusting the expected timeline for contract finalization from Q2 (July–September) to Q3 (October–December) of FY26. This marks another shift, following initial projections of order placement by March 2025, later revised to mid-2025 and now extended further.
Technical barriers have played a role in this delay. The planned site altitude, which in places exceeds 4,000 meters with Pang alone situated above 4,700 meters, is a challenge for HVDC installations. The lack of reference projects has made suppliers hesitant and necessitated additional technical validation. Reports suggest that the only OEM supplier to engage thus far has expressed doubts about the viability of VSC HVDC at such extreme elevations.
PGCIL is currently in further discussions with this interested OEM to specifically address concerns related to temperature, altitude, and logistics. An internal resolution is targeted within two months, after which the contract awarding process could conceivably proceed.
Construction in Ladakh is further complicated by the restricted window from April to October due to severe weather and road conditions. Road upgrades to accommodate over-dimensional cargo—essential for HVDC equipment—are still being developed, further limiting scheduling options. The project’s remote location, close to the China border, requires extra security and logistics support for both assets and workers.
PGCIL has reaffirmed its commitment to resolving the current obstacles and indicated that contract awards are now expected later in 2025. The agency has established "Powergrid West Central Transmission Ltd." as the project’s dedicated SPV. In the meantime, a smaller solar and BESS pilot project at Pang is being tendered to support early construction activity, but the main transmission link remains delayed.
