State-run Power Grid Corporation of India Limited (PGCIL) is planning an ambitious undersea interconnection project worth up to Rs 40,000 crore with countries in the Middle East. According to the company's chairman and managing director, R. K. Tyagi, this project aims to establish a high-voltage direct current (HVDC) link from Gujarat's Bhuj to countries like Oman, Saudi Arabia, and the UAE.

The initiative, which involves laying a high-capacity cable on the seabed to connect with similar 'pulling stations' on the shores of the Middle Eastern countries, is expected to have a capacity of up to 2,500 MW and take up to six years to complete. This project aligns with Power Grid's strategy to continuously commission new projects to maintain and boost revenue growth, particularly as earnings from older transmission projects decline over time.

In terms of financial performance, Power Grid experienced a relatively flat revenue growth in the June quarter but expects a modest topline increase of 4-5% in FY25. To support this growth, the company plans to invest Rs 18,000 crore in the current fiscal year. The slower revenue growth in the June quarter was attributed to the 'capitalization' of only Rs 2,300 crore worth of projects. However, the company plans to significantly increase this figure to up to Rs 18,000 crore within the fiscal year, which is anticipated to enhance future growth rates.

This strategic investment in undersea interconnection with the Middle East not only underscores Power Grid's commitment to expanding its infrastructure but also highlights its role in enhancing energy connectivity and cooperation beyond India's immediate neighborhood.