Infrastructure & PPPs in India - Q2 2026 Update - Clean Energy Transition

YOG INFRA
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INDIA renewable energy sector is accelerating through large-scale investments in firm and dispatchable renewable energy (FDRE), hydropower, battery energy storage systems (BESS), green hydrogen, and transmission infrastructure. Key developments include government approval of USD 4.36 Bn for two hydropower projects, a USD 557 Mn floating solar–BESS programme, and USD 1 Bn equity commitment for a new power transmission platform. The Solar Energy Corporation of India (SECI) is driving deployment through 1.2 GW/4.8 GWh assured peak renewable tenders, rooftop solar programmes, green ammonia procurement, and a 500 MW Contracts for Difference (CfD) pilot. The sector is further supported by major PPAs for wind and FDRE projects, expanding battery storage capacity, and investments in critical minerals, reinforcing India’s transition toward a resilient, low-carbon energy system.

Read more about key developments in Infrastructure and PPPs in India in power & clean energy transition sector our latest insight.

This is first publication on a 2-part insight series on India.

APRIL 2026

INSOLARE, SCC SIGN 10-YEAR GREEN AMMONIA SUPPLY DEALS IN INDIA

Indian renewable energy and net-zero solutions company InSolare Energy Ltd has signed long-term agreements to supply green ammonia to the Solar Energy Corporation of India (SECI) projects with a combined contract value of INR 37 Bn (USD 396.5 Mn).

The agreements were executed in consortium with SCC Infrastructure Pvt Ltd and provide for the supply of 85,000 tonnes of green ammonia annually over a 10-year period. The green ammonia will be produced from two projects and supplied to fertiliser manufacturers in India.

Under the agreements, approximately 70,000 tonnes of green ammonia per year will be supplied to Madhya Bharat Agro Products Ltd in Dhule, Maharashtra, at a price of INR 53.05/kg, while the remaining 15,000 tonnes will be delivered annually to Paradeep Phosphates in Mangalore, Karnataka, at INR 57.65/kg. Both fertiliser companies have separate green ammonia supply agreements with SECI.

The agreements support SECI's green ammonia procurement programme under India's Strategic Interventions for Green Hydrogen Transition (SIGHT) initiative, a key component of the National Green Hydrogen Mission. They build on SECI's contracts awarded last month for the procurement and supply of 724,000 tonnes of green ammonia annually, aimed at replacing imported grey ammonia in the production of non-urea fertilisers.

INDIA GREENLIGHTS 2 HYDROPOWER PROJECTS IN ARUNACHAL GRID EXPANSION DRIVE

India’s Cabinet Committee on Economic Affairs has approved investment proposals for two hydropower projects in Arunachal Pradesh with a combined capacity of 2,920 megawatts (MW). The government has cleared the 1,200-MW Kalai-II Hydro Electric Project (HEP) in the Anjaw district, with an outlay of INR 14,105.83 Cr (USD 1.53 Bn), and the 1,720-MW Kamala HEP across the Kamle, Kra Daadi, and Kurung Kumey districts, with an outlay of INR 26,069.50 Cr (USD 2.83 Bn).

Kalai-II HEP will be built on the Lohit River and is expected to generate 4,852.95 million units (MU) of electricity annually. The project will take 78 months to complete and will include around 29 kilometers of roads and bridges for local use. The Government of India will provide INR 599.88 Cr (USD 65.20 Mn) for roads, bridges, and transmission infrastructure and INR 750 Cr (USD 81.52 Mn) as central financial assistance for the state’s equity share. It will be developed through a joint venture between THDC India Limited and the Government of Arunachal Pradesh.

Kamala HEP will be built across Kamle, Kra Daadi, and Kurung Kumey districts. It is expected to generate 6,870 MU annually and will take 96 months to complete. The center will provide INR 4,743.98 Cr (USD 515.65 Mn) for flood moderation and INR 1,340 Cr (USD 145.65 Mn) for roads, bridges, and transmission infrastructure, along with INR 750 Cr (USD 81.52 Mn) as central financial assistance for the state’s equity share.

The project will include around 196 km of roads and bridges and infrastructure such as hospitals, schools, and marketplaces financed from project funds. It will be implemented through a joint venture between NHPC Limited and the Government of Arunachal Pradesh.

SECI INVITES BIDS FOR 4.45 MW ROOFTOP SOLAR PROJECTS ACROSS INDIA UNDER RESCO MODEL

Solar Energy Corporation of India Limited has announced a new tender to select Solar Project Developers (SPDs) for setting up 4,455 kW of grid-connected rooftop solar PV systems across multiple locations in India. These projects will be developed under the RESCO model, where developers invest in, build, and operate the systems while supplying power to the respective institutions.

The projects will be installed across 14 organizations and institutes, including campuses of Central Sanskrit University and the Regional Passport Office in Bhopal. This initiative is part of India’s broader clean energy push and supports the government’s Panchamrit target of achieving 50% of total energy capacity from renewable sources by 2030.

The tender is technology-agnostic, allowing bidders to choose their preferred solar photovoltaic technology. However, developers must meet certain performance benchmarks. A minimum annual Capacity Utilization Factor (CUF) of 15% is required for Category A projects, while Category B projects must achieve at least 13.5% CUF. The categorization depends on project location and timelines.

MNRE APPROVES 500 MW PILOT CFD PROGRAM FOR RENEWABLE ENERGY

The Ministry of New and Renewable Energy (MNRE) has approved a pilot Contracts for Difference (CfD) program for renewable energy, with the Solar Energy Corporation of India (SECI) designated as the nodal agency. Under the approved framework, SECI will issue a tender for 500 MW of renewable energy capacity to supply 1,500 MWh of power during three non-solar hours each day. The specific hours may be defined within a designated time band by SECI, allowing developers operational flexibility. The projects will be implemented on a build-own-operate basis, with a contract tenure of 12 years.

Developers will be selected through a competitive reverse bidding process, with a cap of 125 MW per bidder to ensure broader participation. The CfD mechanism will enable renewable energy generators to sell electricity on power exchanges, while SECI will settle the difference between a competitively discovered strike price and the prevailing market clearing price. This structure is designed to provide revenue to developers while retaining market-based price discovery. Settlements will be benchmarked to zonal day-ahead market (DAM) prices, and the bidding sequence will follow a structured order beginning with the Green Day-Ahead Market (GDAM), followed by DAM, and subsequently the Real-Time Market (RTM).

To support the settlement framework, the government has created an INR 760 Mn (USD 8.12 Mn) stabilization fund for pay-ins and pay-outs. The profits and losses will be shared daily between the renewable energy generator and the CfD pool in a 30:70 ratio, with monthly reconciliation.

The pilot aims to test the financial, operational, and regulatory viability of CfDs in India's evolving power market, providing a potential pathway for scaling market-based renewable energy procurement mechanisms in the future. SECI invited quotations from scheduled commercial banks to invest INR 4.5 Bn (USD 49.603 Mn) in term/fixed deposits.

ATRIA GROUP LAUNCHES 6 MW AGRIVOLTAIC SOLAR PROJECT ACROSS 600 ACRES IN CHITTOOR WITH 300 KW SYSTEMS PER BLOCK

A new agrivoltaic solar project has been launched at Thirumala Raju Puram in Chittoor district under Project Chittoor, a rural regeneration initiative led by Atria Group in partnership with Atria Renewable Private Limited.

The project introduces field-integrated agrivoltaic systems, where solar panels are installed above farmland, enabling simultaneous crop cultivation and renewable energy generation. Each unit spans 1 to 1.5 acres with an installed capacity of around 300 kW, ensuring uninterrupted agricultural activity.

Designed as a long-term rural development model, Project Chittoor aims to address key farming challenges such as climate stress, fluctuating incomes, rising input costs, and unreliable electricity supply. The agrivoltaic approach provides farmers with an additional, stable income stream without reducing cultivable land.

Electricity generated from the solar installations will power shared agricultural infrastructure, including irrigation pumps, borewells, cold storage, and processing units. This is expected to reduce dependence on grid power and lower operational costs, while surplus energy can generate additional revenue at the cluster level.

The elevated solar panels also offer partial shading, helping reduce heat stress and water evaporation, thereby improving crop resilience during extreme weather conditions. Project Chittoor spans nearly 600 acres and targets an agrivoltaic capacity of approximately 6 MW.

MAY 2026

VENA ENERGY SIGNS 124 MW WIND POWER AGREEMENT WITH SECI

Vena Energy has announced the signing of a Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) for 124 MW of wind energy capacity under SECI Wind Tranche XIX. Leveraging Inter-State Transmission System (ISTS) connectivity, the project will enable efficient transmission of clean energy across regions, supporting grid stability and enhancing the resilience of India's power system.

Once operational, the project is expected to generate approximately 428,000 MWh of renewable energy annually, equivalent to powering around 406,000 households in India. It is also expected to avoid nearly 407,000 tonnes of greenhouse gas emissions each year and save approximately 321 million liters of water compared to conventional thermal power generation.

I SQUARED CAPITAL LAUNCHES CUBE GRID – A NEW POWER TRANSMISSION PLATFORM IN INDIA

I Squared Capital ("I Squared"), a leading global infrastructure investment manager, announced the launch of Cube Grid, a new power transmission platform targeting India's rapidly expanding electricity grid. I Squared expects to deploy up to USD 1 Bn of equity capital into Cube Grid to acquire and build a scaled portfolio of high-quality transmission assets across India.

Consistent with I Squared's platform-building approach, Cube Grid has signed definitive agreements for seed assets totaling more than 1,450 circuit kilometers (ckm) of transmission lines. These projects are being developed in partnership with Dineshchandra Group (Dineshchandra R. Agrawal Infracon Private Limited or "DRAIPL"), an established infrastructure developer with over five decades of experience delivering large-scale projects across India, Australia, West Asia, and Africa.

The Government of India has outlined an ambitious roadmap to modernize and expand the national grid, requiring an estimated USD 120 Bn of capital expenditure over the next five to seven years to integrate new generation capacity and meet rising demand.

GOVT. CLEARS USD 557 MN FLOATING SOLAR-BATTERY STORAGE PLAN

In a strategic effort to enhance India's renewable energy capabilities and ensure long-term energy stability, the Finance Ministry's Expenditure Finance Committee (EFC) has given its approval to a INR 5,500 Cr (USD 557 Mn) scheme aimed at advancing floating solar power projects integrated with battery energy storage systems.

The proposed plan is expected to be presented to the union cabinet for final approval as the government steps up its push to expand clean energy infrastructure in response to global supply disruptions caused by ongoing tensions in West Asia. Under the scheme, floating solar installations will be developed on reservoirs and other water bodies, paired with integrated battery storage systems. This approach may ease land-use pressures while enhancing the efficiency and dependability of renewable power generation.

The Ministry of New and Renewable Energy (MNRE) initially sought an allocation of INR 6,700 Cr (USD 700 Mn) for the scheme. However, the Expenditure Finance Committee (EFC) approved a reduced outlay of INR 5,500 Cr (USD 557 Mn) and recommended changes to certain elements of the incentive structure ahead of the scheme's rollout.

The central government is positioning floating solar technology as a crucial element of its broader renewable energy expansion strategy, particularly beyond traditional high-solar-radiation zones. The incorporation of battery storage is also anticipated to improve grid reliability by retaining surplus solar energy and delivering electricity during high-demand periods. This scheme is part of India's larger clean energy transition roadmap, which seeks to decrease dependence on imported fossil fuels amid geopolitical uncertainties and volatile global energy prices.

Although floating solar projects currently involve higher expenses than ground-mounted systems, pilot initiatives conducted in Madhya Pradesh and Andhra Pradesh have demonstrated their scalability and future viability.

KCC BUILDCON, AGASTYA GREEN ENERGY, MKC GREEN ENERGY WIN UPPCL'S 1500 MWH BESS AUCTION

Uttar Pradesh Power Corporation's (UPPCL) auction for setting up 375 MW/1,500 MWh standalone battery energy storage systems (BESS) in Uttar Pradesh with charging under the developer's scope has discovered an L1 tariff of INR 6.45/kWh.

KCC Buildcon, Agastya Green Energy (Agastya Energy Industries), and MKC Green Energy (MKC Infrastructure) emerged as winners. KCC Buildcon and Agastya Green Energy have won 187.5 MW and 62.5 MW, respectively, at a tariff of INR 6.45/kWh. MKC Green Energy has secured 125 MW at a tariff of INR 6.46/kWh under the bucket-filling method. The battery energy storage purchase agreement (BESPA) will be for a period of 15 years.

The projects will be eligible for viability gap funding support at INR 18 lakh/MWh (USD 18,890) under the VGF Tranche II scheme. The discovered tariff marks a reduction compared to a similar tender floated earlier by NTPC Vidyut Vyapar Nigam in 2024 for Uttar Pradesh, which was awarded at INR 6.64/kWh and has since received regulatory tariff approval.

JUNE 2026

NLC INDIA AND CSIR-CECRI SIGN MOU ON CRITICAL MINERAL BENEFICIATION AND EXTRACTION

NLC India Ltd. (NLCIL) has signed a memorandum of understanding (MoU) with CSIR-Central Electrochemical Research Institute (CSIR-CECRI), Karaikudi, to collaborate on beneficiation and extraction technologies for critical and strategic minerals.

NLCIL has been actively pursuing opportunities in the exploration and development of critical and strategic minerals from both primary and secondary sources. As part of this initiative, it has undertaken extensive studies on the occurrence and recovery potential of rare earth elements (REEs) and other trace elements from secondary source materials.

Under this MoU, detailed studies will be undertaken on overburden materials and tailings generated from NLC’s Neyveli Mines to assess the potential for extraction and recovery of rare earth elements (REEs) and other trace elements. The collaboration will also explore similar opportunities across other mining and exploration projects of NLCIL, with the objective of developing sustainable and economically viable technologies for resource recovery from secondary sources.

SECI ISSUES TENDER FOR 1200 MW/4800 MWH ASSURED PEAK RENEWABLE ENERGY PROJECTS ACROSS INDIA

The Solar Energy Corporation of India Limited (SECI) has issued a Request for Selection (RfS) for the development of Inter-State Transmission System (ISTS)-connected renewable energy projects under its SECI-FDRE-IX program. The initiative aims to strengthen India’s renewable energy infrastructure by ensuring a reliable supply of clean power during peak demand periods while supporting grid stability through integrated energy storage solutions.

SECI plans to select renewable energy power developers capable of providing an assured peak power supply of 4,800 MWh, equivalent to 1,200 MW for four hours every day. The projects will be developed on a Build-Own-Operate (BOO) basis, with developers responsible for establishing, owning, and operating the facilities throughout the project lifecycle.

The selected developers will sign a Power Purchase Agreement (PPA) with SECI, which will act as an intermediary procurer. The generated power will subsequently be supplied to various state-owned distribution companies (DISCOMs), helping them meet growing electricity demand with firm and dispatchable renewable energy. The initiative reflects India’s ongoing efforts to integrate large-scale renewable energy capacity while ensuring a stable and reliable power supply.

SECI FLOATS TENDER FOR 12.25 MW ROOFTOP SOLAR PROJECTS

The Solar Energy Corporation of India (SECI) has floated a tender to select solar project developers to set up 12,250 kW of grid-connected rooftop solar photovoltaic (PV) projects on Jawahar Navodaya Vidyalayas (JNV) buildings under Phase II (Tranche XI). The projects, with a total estimated capacity of around 12,250 kW, have been divided into two categories and will be installed across 21 states and union territories. The development was on a build-own-operate-transfer basis under the renewable energy service company (RESCO) model.

The selected developer will be responsible for designing, supplying, installing, testing, and commissioning the rooftop solar projects, as well as their operation and maintenance throughout the power purchase agreement (PPA) period. Additionally, it includes obtaining net metering and grid connectivity approvals from the concerned discoms and replacing defective equipment whenever required.

BLUPINE ENERGY SIGNS 150 MW ASSURED PEAK POWER PPA WITH SJVN

BluPine Energy has announced that the company has signed a Power Purchase Agreement (PPA) with SJVN for the supply of 150 MW of Assured Peak Power under the utility's FDRE-4 tender. Under the agreement, the project will supply 150 MW of assured peak renewable power over a 25-year period at a discovered tariff of INR 6.74 per unit. The company secured the capacity in SJVN Green Energy's 1.5 GW/6 GWh FDRE auction held in October 2025 through its special purpose vehicle (SPV), Solarcraft Power India 8. The tender was issued in December 2024.

The project marks another milestone in BluPine Energy's expansion in the firm and dispatchable renewable energy (FDRE) segment, which is increasingly becoming critical for ensuring a reliable power supply as India's renewable energy capacity continues to grow. The agreement reinforces its commitment to delivering reliable and dispatchable clean energy solutions that support the country's evolving electricity requirements. BluPine Energy has around 1.5 GW of operational renewable energy capacity and has a long-term ambition to build a 4+ GW renewable energy platform in India.

RSDCL INVITES EOI TO SET UP BESS AT 680 MW SOLAR PARK IN RAJASTHAN

Rajasthan Solarpark Development Company Limited (RSDCL), a subsidiary of Rajasthan Renewable Energy Corporation, has invited an expression of interest (EoI) for setting up a battery energy storage system (BESS) at the 680 MW Bhadla solar park in Rajasthan. The project aims to utilise the underutilised transmission capacity during non-solar hours. The selected developer will implement the project under a developer-led model, while RSDCL will provide land and infrastructure support under a 15-year concession period.

The selected developer will be responsible for the complete lifecycle of the project, including system design, financing, engineering, procurement, construction, testing, and commissioning of the BESS facility. The developer will also own the BESS assets during the concession period and carry out operation and maintenance for 15 years.

List of Key Transactions - Q2 2026

Source: YOG INFRA analysis

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