New Delhi: A flagship transmission project meant to carry renewable power out of Ladakh is under review, after engineering studies found that no high-voltage direct current (HVDC) solution was available for the extreme altitude of its Pang terminal, the Ministry of New and Renewable Energy (MNRE) has told a parliamentary panel.
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The Inter-State Green Energy Corridor Phase-II envisaged HVDC terminals at Pang in Ladakh and Kaithal in Haryana, together with a 12 GWh Battery Energy Storage System, to move renewable energy across states. The Standing Committee on Energy, in its 13th report presented to the Lok Sabha on August 6, recorded that "the entire project is under review owing to the reports of Front-End Engineering and Design (FEED) studies."
The ministry told the committee that the inter-state portion was discussed at a meeting of the Northern Region Power Committee on September 8, 2025, attended by the Central Electricity Authority, the Central Transmission Utility of India Limited (CTUIL), GRID INDIA and northern state transmission utilities. On completing the FEED studies, CTUIL reported that the Voltage Source Converter (VSC) HVDC scheme faced the "Complex Geography of PANG PS (at 4700m altitude and low temperature [-35 degree])," and that "No VSC HVDC solutions were available at such high altitude."
The studies also flagged "High level of UV & cosmic radiation – high failure rate of power electronic devices," weak network strength, the presence of multiple inverter-based resources, and transportation and logistics concerns, alongside technical challenges from operating at derated voltage.
Solar Energy Corporation of India (SECI), responsible for aggregating and tendering the renewable power, "flagged concerns arising from the FEED study findings regarding the overall project configuration," the ministry said. The FEED studies, undertaken by original equipment manufacturers, found that the weak grid at the Pang node and the high penetration of inverter-based generation would require substantial dynamic reactive power support to keep the HVDC system stable. They recommended installing about 18 synchronous condensers of roughly 2,250 MVAr at Pang to maintain voltage stability, at an estimated cost of around Rs 7,000 crore — a cost the proposal envisaged placing under the scope of renewable energy developers.
The committee said it "understand the challenges being faced regarding implementation of the Inter-state Green Energy Corridor Phase-II project at critical location of Pang in the Union territory of Ladakh," and expected the ministry to act on the FEED findings and keep it informed.
The review of the Ladakh link came against a longer record of hold-ups the committee has repeatedly raised. It noted "consistent delays under Intra-State Green Energy Corridor Phase-I and Phase-II," the transmission infrastructure meant to evacuate renewable power within states. Phase-I, initially due in December 2020, has been extended several times.
The committee said Phase-I had been delayed by "Right of Way (RoW) issues, delay in issuing tenders because of delay in substation land acquisition, delay in award of works due to low bid turnout in various projects which resulted in re-tendering several times, court cases, forest clearances, Great Indian Bustard (GIB) related clearance etc." Phase-II, it said, had been held up by "non-participation during tendering process, re-tendering, limited bidder participation, cancellation of tenders, Regulatory issues etc."
In reply, the ministry said seven of the eight states under Phase-I had completed their work. Gujarat "has sought further extension for two packages which were delayed due to RoW and Great Indian Bustard (GIB) issues, now on track after the decision by Hon'ble Supreme Court on GIB matter and likely to be complete by March 2027." On Phase-II, due by March 2026, the report noted that 76 of 91 packages had been tendered and 74 awarded as on January 31, with states having sought an extension. The ministry said it was "actively monitoring completion through dedicated review mechanisms."
The ministry said it was structuring Phase-III of the corridor to address the causes of earlier delays, framing it as "a PPP scheme implemented in Tariff-Based Competitive Bidding (TBCB) mode," under which private transmission service providers "bear construction and RoW risk themselves, face stronger contractual penalties under performance monitoring, and have a financial incentive to resolve land-related issues proactively." The phase aims to evacuate around 135 GW of renewable energy with central support of about 33 percent, or roughly Rs 54,000 crore.
On environmental clearances, the ministry said "Forest clearance bottlenecks, which caused significant delays in Rajasthan and Gujarat under Phase-I due to GIB-related restrictions," would be addressed through pre-planning under the PM Gati Shakti National Master Plan framework and a joint coordination mechanism at the Cabinet Secretariat level, "enabling early identification and resolution of forest and wildlife conflicts before tendering rather than during execution."
On the committee's push for states to adopt central RoW compensation norms, the ministry said that under Phase-III's "Challenge Mode" sanction framework, priority would go to states whose RE and land-compensation policies aligned with the Ministry of Power's directions, "making adoption of Central Government RoW guidelines a de facto eligibility condition for early project sanction." It said land remained a state subject and that it had been writing to states to identify land, expedite allocation and ease land-use conversion norms, and that a dedicated project monitoring unit with an online MIS system would be set up to track Phase-III.
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The committee said it expected the ministry "to be cautious while formulating Phase-III of the scheme" and asked to be apprised of its roadmap and anticipated outcomes.
