Power Grid to build Rs 20k-crore Green Energy Corridor-II in Ladakh

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The Cabinet Committee on Economic Affairs (CCEA) has given its approval for viability gap funding (VGF) to the state-owned Power Grid Corporation of India (PGCIL) for the construction of the Green Energy Corridor-II (GEC-II) in the Ladakh region.

The GEC-II is an Inter-State Transmission System (ISTS) project aimed at connecting at least 13 gigawatts of forthcoming renewable energy projects in Ladakh. The government plans to complete the project by the financial year 2029-30 at an estimated cost of Rs 20,773.70 crore. Central Financial Assistance (CFA) will cover 40 per cent of the project cost, amounting to Rs 8,309.48 crore, according to a government statement.

Due to defence sensitivities and challenging climatic conditions in Ladakh, the government has designated PGCIL as the implementing agency for the project. The GEC initiative, launched in 2012, serves as a dedicated transmission network for connecting renewable energy zones to the national grid.

The transmission lines for this project will extend through Himachal Pradesh and Punjab, culminating at Kaithal in Haryana, where they will integrate with the National Grid. An additional interconnection is planned from Leh to the existing Ladakh grid to ensure a reliable power supply for the region. The project will also link to the Leh-Alusteng-Srinagar line to provide power to Jammu & Kashmir. Overall, the project will involve the construction of 713 km of transmission lines, including a 480 km high-voltage direct current (HVDC) line, and two 5 GW HVDC terminals at Pang in Ladakh and Kaithal in Haryana.

In his Independence Day speech in 2020, Prime Minister Narendra Modi announced plans for a 7.5 GW solar park in Ladakh. Following this, the Ministry of New and Renewable Energy (MNRE) prepared a strategy to establish a 13 GW renewable energy generation capacity, complemented by a 12 GWh Battery Energy Storage System (BESS) in Pang, Ladakh.