H.G. Infra Wins ₹15,281 Cr Odisha Power Project!
Declared the lowest bidder by PFC Consulting, HGINFRA, to develop an interstate transmission project under the BOOT model with 35-year operational tenure and ₹431.11 million annual transmission charges.
Summary:
Infrastructure major H.G. Infra Engineering Limited (HGINFRA) has emerged as the lowest bidder (L1) for a high-value power infrastructure project floated by PFC Consulting Limited, a subsidiary of Power Finance Corporation. The project, a part of the Eastern Region Generation Scheme – I (ERGS-I), involves the development of an interstate transmission system in Odisha under the BOOT (Build, Own, Operate & Transfer) model. The annual transmission charges are pegged at ₹431.11 million, with a project tenure extending till March 28, 2028, followed by 35 years of operations. This significant win boosts HGINFRA’s already robust ₹15,281.20 crore order book and strengthens its position in the power infra segment.
In a significant development for the Indian infrastructure and power transmission space, H.G. Infra Engineering Limited (HGINFRA) has been announced as the lowest bidder (L1) for a prestigious project awarded by PFC Consulting Limited, a wholly owned subsidiary of Power Finance Corporation Limited (PFC).
The project pertains to the implementation of an interstate transmission system under the Eastern Region Generation Scheme – I (ERGS-I) in the state of Odisha. The tender process followed a tariff-based competitive bidding (TBCB) model, and HGINFRA’s success as the lowest bidder signals its aggressive foray into high-value power infrastructure projects.
Project Overview
Client: PFC Consulting Limited (PFC’s subsidiary)
Project Title: Eastern Region Generation Scheme – I (ERGS-I)
Scope: Establishment of an interstate transmission system (ISTS)
Location: Odisha
Delivery Model: BOOT – Build, Own, Operate & Transfer
Scheduled Completion: March 28, 2028
Operational Period: 35 years post-commissioning
Annual Transmission Charges: ₹431.11 million
The project structure under the BOOT model signifies that HGINFRA will not only construct the transmission infrastructure but will also own and operate it for 35 years before transferring it to the designated authority or government. This approach ensures recurring revenue and operational control for the company over an extended period.
Financial Implications
The ₹431.11 million in annual transmission charges over a 35-year period translates into a cumulative revenue of over ₹1,500 crore, excluding inflation-linked escalations and operational optimizations. This order, while yet to be formally signed, further enhances HGINFRA’s already impressive ₹15,281.20 crore order book, offering long-term visibility and stable cash flows for shareholders and stakeholders.
About H.G. Infra Engineering Ltd.
H.G. Infra Engineering Limited, headquartered in Jaipur, is a leading player in the EPC (Engineering, Procurement, and Construction) segment, especially in road construction, highways, bridges, and railway infrastructure. Over the past decade, it has steadily diversified into urban infrastructure and power transmission sectors, looking to capitalize on India’s increasing investments in green and grid infrastructure.
Known for timely project execution and financial prudence, HGINFRA has built a reputation for delivering government and PPP-based contracts with efficiency and engineering excellence. This latest L1 status for a BOOT power project positions the company as a serious contender in the power infra space, diversifying its revenue base and reducing dependence on transport infrastructure alone.
Market Reaction & Strategic Significance
Though the immediate market response to this development is yet to materialize fully, analysts expect positive investor sentiment once the project is formally awarded. The shift towards BOOT projects, with long-term operational control, is also viewed favourably from a valuation perspective.
Key strategic benefits of this project include:
Diversification into energy infrastructure and grid transmission
Annuitized revenue model with inflation-linked escalation
Strengthened technical credentials in the power TBCB segment
Enhanced order book offering multi-year business visibility
This order win comes at a time when the Government of India is aggressively pushing for national power grid expansion, renewable energy integration, and inter-state energy trading mechanisms, making transmission infrastructure a high-growth sector.
Expert Views
Industry experts believe that HGINFRA’s aggressive participation in BOOT and hybrid annuity model (HAM) projects is part of a larger strategic roadmap to diversify risk, capture long-term revenue potential, and improve balance sheet quality.
“The BOOT model allows companies like HGINFRA to build long-term value by creating a mix of construction revenues and stable, recurring income. This marks a transition from project-based EPC to asset-based business models,” said a Delhi-based infrastructure analyst.
Outlook: What’s Next?
With this L1 declaration, HGINFRA is expected to proceed with the signing of the Letter of Award (LoA) in the coming weeks. Project mobilization and EPC design work will commence soon after. Investors and stakeholders will now keenly watch the company’s ability to:
Complete the task by the designated deadline of March 2028.
Oversee O&M activities effectively throughout the 35-year lifespan.
Leverage this win to bag similar power infra projects in the future
If executed successfully, this could set a new precedent for the company’s positioning in the power infrastructure space, opening doors to additional BOOT or PPP-based contracts from PFC, REC, and other central nodal agencies.
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