BHEL to build 6GW HVDC transmission terminal for Adani-linked project in Rajasthan-Uttar Pradesh corridor

Bharat Heavy Electricals Limited (BHEL) has secured a significant contract in India‘s clean energy infrastructure push, signing a deal for the construction of ±800 kV, 6,000 MW High Voltage Direct Current (HVDC) terminal stations and associated Alternating Current (AC) transmission infrastructure between Bhadla in Rajasthan and Fatehpur in Uttar Pradesh. The contract, finalised in consortium with Hitachi Energy India Limited, was awarded by Rajasthan Part I Power Transmission Limited, a fully owned subsidiary of Adani Energy Solutions Limited.

The transmission project is designed to support India’s renewable energy transition by enabling the large-scale evacuation and transfer of solar power generated in Bhadla—one of the country’s largest solar parks—to the industrial regions of Uttar Pradesh. The installation is expected to be completed by 2029 and will significantly strengthen the national power grid by providing bi-directional transmission capacity and enhancing grid stability.

This marks the fourth Ultra High Voltage Direct Current (UHVDC) project awarded to Bharat Heavy Electricals Limited, reinforcing the company’s leadership in HVDC technology and grid integration for renewable energy.

What is the Bhadla-Fatehpur HVDC project and why is it crucial for India’s energy future?

The Bhadla-Fatehpur HVDC project is a 6,000 MW capacity transmission system operating at ±800 kV voltage, capable of bi-directional power flow across a distance exceeding 950 kilometres. The system will use Line-Commutated Converter (LCC) HVDC technology, one of the most mature and robust forms of long-distance electricity transmission.

This initiative directly aligns with the Government of India’s 2030 target to install 500 GW of non-fossil fuel-based capacity under its renewable energy mission. Rajasthan, home to some of the country’s most efficient solar resources, serves as the generation centre, while Fatehpur in Uttar Pradesh is set to act as a strategic load centre, feeding industrial and transport demands.

The HVDC link will address critical issues associated with renewable power transmission, such as grid congestion, voltage instability, and reactive power loss. By enabling controlled and loss-minimised transfer of bulk renewable energy, the project contributes to India’s broader decarbonisation goals and energy transition strategy.

How does the BHEL-Hitachi Energy consortium plan to execute the HVDC transmission link?

The project involves comprehensive design, manufacturing, supply, and installation of HVDC converter stations at both ends—Bhadla and Fatehpur. Bharat Heavy Electricals Limited, India’s largest power equipment manufacturer, will be responsible for delivering key HVDC components including converter transformers, shunt reactors, filter bank capacitors, medium voltage switchgear, and instrument transformers from its Bhopal plant. Its Bengaluru-based Electronics Division will supply advanced thyristor valves critical for converting AC power to DC at the Bhadla station and vice versa at Fatehpur.

These valves are central to the HVDC technology, enabling electricity to be transmitted over long distances with minimal losses and without the requirement for intermediate substations. The project also includes the construction of a 765 kV/400 kV AC power evacuation system at Fatehpur and a 400 kV AC substation at both Bhadla and its extension, designed and executed by BHEL’s Transmission Business Group.

This approach ensures indigenous manufacturing under the ‘Make in India’ policy framework, reducing reliance on imported technologies while creating domestic supply chain efficiencies.

What is the historical significance of BHEL’s role in India’s HVDC development?

Bharat Heavy Electricals Limited has been at the forefront of India’s HVDC journey since the late 20th century. Its involvement began with the Rihand-Dadri HVDC link in the early 1990s, which marked India’s first foray into the long-distance transmission of high-voltage electricity using DC systems. Since then, BHEL has played a key role in several critical HVDC projects, including Chandrapur-Padghe, Ballia-Bhiwadi, and the landmark North-East Agra and Raigarh-Pugalur ±800 kV HVDC links.

The North-East Agra link, jointly developed with Hitachi’s predecessor ABB, was the first multi-terminal UHVDC project in India, allowing for power to be dispatched from multiple points to various load centres. The Raigarh-Pugalur link, one of the longest in India, also contributed significantly to grid balancing and renewable energy management.

Currently, BHEL and Hitachi Energy India are also executing the 6,000 MW Khavda-Nagpur HVDC transmission project, which is linked to the massive solar development under way in Gujarat’s Khavda region.

With the addition of the Bhadla-Fatehpur link, BHEL further cements its position as the key domestic player in India’s HVDC evolution, backed by decades of technical know-how, dedicated manufacturing lines, and strategic partnerships with global leaders in power electronics and grid management.

How do stock market trends and sentiment reflect investor confidence in BHEL and Adani Energy Solutions?

As of April 4, 2025, Bharat Heavy Electricals Limited’s stock closed at ₹214.45, recording a 1.93% decline from its previous close. Despite the short-term dip, the company has seen a 282.6% return over a three-year period, significantly outperforming the Nifty 100 benchmark return of 30.55%. However, technical indicators, including a weekly stochastic crossover and MACD signal, suggest potential near-term weakness, with historical patterns indicating a possible decline of 8–9% in the following weeks. Investors may consider waiting for price stabilization before making buy decisions, while long-term holders may continue to benefit from the company’s dominant position in power infrastructure and energy manufacturing.

Adani Energy Solutions Limited, the project partner through its wholly owned subsidiary, closed at ₹859.40 on April 4, down 2.82% from its prior close. Although recent performance suggests bearish trends, market analysts remain optimistic. The company holds a “Strong Buy” rating from brokerages, with four analysts recommending strong buy and one recommending buy. Despite the short-term technical downturn, AESL’s long-term positioning in green transmission and infrastructure continues to attract positive sentiment. Investors could consider the recent correction as a buying opportunity, supported by fundamentals and growth prospects in green energy evacuation.

For both companies, the Bhadla-Fatehpur HVDC project reinforces strategic ambitions and strengthens market credibility. The deal aligns with government policy support and industry momentum favouring domestic equipment manufacturers and renewable energy integration, both key factors in driving future stock performance.

What are the broader implications of the project for India’s renewable grid integration?

One of the main challenges in renewable energy deployment lies in efficiently transmitting power from generation-rich regions—often remote and sparsely populated—to high-demand urban and industrial centres. Conventional AC transmission lines suffer from high losses and limited controllability, especially across long distances. HVDC technology offers a superior alternative by enabling point-to-point transmission with reduced line losses, voltage regulation, and improved system reliability.

The Bhadla-Fatehpur project is expected to enhance regional grid flexibility and help manage the intermittency of solar generation. It will also support India’s Green Energy Corridors programme, aimed at integrating renewable energy into the national grid infrastructure. Given that solar and wind generation fluctuate based on weather patterns, the ability to reverse power flow based on load and generation conditions is critical—something that bi-directional HVDC systems are specifically built for.

Moreover, by establishing indigenous capabilities for designing, manufacturing, and deploying HVDC systems, India is reducing its dependence on foreign OEMs while scaling up transmission infrastructure for large-scale renewable energy projects.

The Bhadla-Fatehpur UHVDC terminal project illustrates not only the technological maturity of India’s HVDC ecosystem but also the strategic interlinkages shaping the country’s energy future. As India races toward its 2030 renewable energy targets, such grid-scale transmission projects will form the critical backbone, enabling clean energy to flow across state lines, stabilising the grid, and ultimately powering the country’s economic ambitions through sustainable means. For investors, the partnership between Bharat Heavy Electricals Limited and Adani Energy Solutions Limited represents not only a milestone in national infrastructure but also a potential long-term value opportunity amid India’s green energy surge.