The Indian Government has approved 23 interstate transmission system (ISTS) projects to be built across India with an estimated Rs158.9bn ($2.1bn) investment.

Union Minister of Power and the Ministry of New and Renewable Energy (MNRE) Raj Kumar Singh approved the projects.

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Of the projects to be developed, 13 will be established under a tariff-based competitive bidding (TBCB) scheme, with an estimated cost of Rs147.6bn.

The remaining ten will be developed under a regulated tariff mechanism and require an Rs11.2bn investment.

The projects will create an evacuation system for renewable projects with 14GW of capacity in the state of Rajasthan, 4.5GW of renewable capacity in Gujarat state, the 1GW Neemuch Solar Park in Madhya Pradesh, and feeding areas located near Akhnoor and Jammu by developing the Siot Substation in Jammu.

Once completed, the transmission network projects will allow electricity to be supplied from regions with excess power to areas where there are shortages.

All the projects were approved after studying the National Committee on Transmission recommendations and ensuring they were in accordance with the National Tariff Policy 2016, which was notified by the central government.

The policy requires ISTS projects to be developed through TBCB, with the exception of certain strategic or time-bound projects.

In a statement, the Power Ministry said: “The above transmission network expansion would augment seamless transfer of power from power surplus regions to power deficit regions and thus optimising the use of generation resources, as well as meeting the demands of end consumers without any transmission constraints.

“It would assist the growth of renewable energy-based capacity.”

Last September, a government committee reportedly approved the sale of Power Grid Corporation of India’s transmission assets for Rs71.64bn.

The state-owned company’s five TBCB assets were to be sold through an infrastructure investment trust model during the fiscal year.