In a major development reinforcing India’s push for energy storage and grid stability, Bondada Engineering Limited has been awarded a ₹204.20 crore contract by Telangana Power Generation Corporation Limited (TSGENCO). The order pertains to the establishment of 100 MWh (50 MW x 2 hours) Battery Energy Storage Systems (BESS) at Shankarpally in Telangana, strategically located near the 400/220KV substation of TGTRANSCO.

This prestigious order falls under a Build Own Operate (BOO) framework and is structured through a Tariff-based Global Competitive Bidding model backed by Viability Gap Funding (VGF), making it one of the most significant steps forward in India’s battery storage sector.

About the Project and Scope of Work

The contract awarded to Bondada Engineering is focused on the installation and commissioning of a 100 MWh Battery Energy Storage System, designed to support “on demand” energy requirements. The BESS system will help stabilize the grid, reduce curtailment of renewable energy, and provide ancillary services including peak load management and frequency regulation.

The complete execution timeline for the project is 18 months from the date of Power Purchase Agreement (PPA) execution, with the operation period spanning 12 years thereafter. The total consideration value of the project is ₹204.20 crore, inclusive of GST.

Importance of Battery Storage Systems in India

With India's energy grid increasingly shifting towards intermittent renewable energy sources like solar and wind, the role of Battery Energy Storage Systems (BESS) is becoming more crucial. These systems ensure that excess energy generated during peak times is stored and used when needed, thereby promoting grid reliability and reducing wastage.

India’s recent policies and commitments toward net-zero targets by 2070 have spurred numerous initiatives focused on energy transition. The inclusion of VGF and competitive tariff-based models indicates the government's commitment to making battery storage economically viable and attractive to private sector players.

Strategic Location: Shankarpally in Telangana

The project is to be set up at Shankarpally, Telangana, near a high-capacity 400/220KV substation of TGTRANSCO, which enhances the project’s utility for grid support. This region has been identified for energy infrastructure development due to its proximity to renewable energy generation hubs and its ability to support heavy-load transmission networks.

Setting up battery energy storage systems near transmission substations minimizes energy loss, increases efficiency, and provides faster response times during grid fluctuations or surges.

Order Terms and Execution Model

Here’s a breakdown of the significant order terms:

• Awarding Entity: Telangana Power Generation Corporation Limited (TSGENCO)

• Nature of Order: Setting up 100 MWh (50 MW x 2 hours) BESS

• Execution Model: Build Own Operate (BOO)

• Tender Type: Tariff-based Global Competitive Bidding with Viability Gap Funding

• Order Value: ₹204.20 crore including GST

• Execution Timeline: 18 months post PPA

• Service Duration: 12 years

• Location: Shankarpally, Telangana

Bondada Engineering Limited will undertake full responsibility for the design, procurement, construction, operation, and maintenance of the battery storage system. This comprehensive engagement positions Bondada not just as an EPC contractor but a long-term energy storage infrastructure partner.

Why This Project Matters for Bondada Engineering

This order reflects Bondada Engineering’s strategic expansion into green energy and smart infrastructure solutions. While the company is already known for its robust track record in executing telecom, solar, and power transmission projects, this battery storage order opens doors to a rapidly growing new vertical.

Key implications for Bondada Engineering:

• Strengthens credentials in BESS sector

• Builds recurring revenue model under BOO framework

• Enhances qualification for future government and private energy storage tenders

• Boosts long-term earnings visibility

The absence of any related-party transactions or promoter interest in the awarding entity also strengthens the governance and transparency around this deal, ensuring clean compliance.

Industry Outlook: India’s Growing BESS Market

The energy storage market in India is projected to grow exponentially, with policy backing from the Ministry of Power and MNRE (Ministry of New and Renewable Energy). Several states, including Telangana, Gujarat, and Maharashtra, are implementing pilot and full-scale BESS projects to support their renewables push.

The government has also launched schemes such as:

• National Programme on Advanced Chemistry Cell Battery Storage

• PLI Scheme for ACC batteries

• VGF support for standalone and grid-integrated BESS

As a result, companies like Bondada Engineering that demonstrate early execution capability and commercial scale are expected to lead the next phase of infrastructure buildout in energy storage.

Conclusion

The ₹204.20 crore BESS contract awarded to Bondada Engineering marks a transformative step in the company’s growth story and further underlines its strategic shift into clean energy infrastructure. With this win, Bondada is now positioned as a serious contender in the Indian battery energy storage segment, poised to benefit from both state and national level energy reforms.

With India targeting a more resilient, responsive, and clean energy grid, battery storage will be at the core of power reforms — and Bondada Engineering is now firmly in the spotlight.

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