IndiGrid Infrastructure Trust is India’s first and largest publicly listed Infrastructure Investment Trust (InvIT) in the power sector, created to let ordinary investors own a piece of the country’s electricity backbone. Launched in 2017 with a handful of transmission lines and backed since 2020 by global investment firm KKR as its sole sponsor, it has grown by steadily acquiring operational infrastructure and then layering on new capabilities - first solar generation, now grid-scale batteries - using the predictable cash flows of the last acquisition to fund the next. The recurring approach is simple: buy or build long-life, monopoly-like energy assets that get paid for being available, not for the volume of power that flows through them, and then sweat every operational detail to keep them running above 99.5% of the time. # Business segments Three engines at different stages - a transmission cash cow with roughly two and a half decades of contracted life left, a national-scale solar platform built through two large acquisitions, and a battery-storage bet that is just starting to generate earnings - each layered on top of the one before. ## 1. Power transmission: the toll road that funds everything else **IndiGrid owns the high-voltage lines and substations that move electricity from power plants to city gates, and it gets paid a fixed fee for keeping them ready every hour of the year - regardless of how much power actually flows.** - **Contracts outlast the mortgage** - the average residual life of these agreements is about 25 years, and because most assets are built on a Build, Own, Operate and Maintain (BOOM) basis, IndiGrid still owns the steel and land after the contract ends and can apply for a tariff extension. The physical towers and substations have a technical life of roughly 50 years, well beyond the TSA period. - **A portfolio of 94 separate revenue streams** - the trust holds about 55 transmission lines spanning roughly 9,700 circuit kilometers and 18 substations with 32,550 MVA of capacity, spread across 20 states and 2 union territories, with each asset generating its own independent payment stream from a different utility counterparty. - **Default protection is built into the system** - under the Point of Connection pooling mechanism, all payments collected by the Central Transmission Utility from power customers across India are pooled and disbursed pro-rata to every transmission provider, so a single utility missing a payment does not stop IndiGrid from getting its share. On top of that, a late payment surcharge of 1.25% per month for delay in payment beyond 60 days from the date of billing applies pursuant to provisions of the project TSAs. - **Operational obsession keeps the incentive cheque coming** - weighted average availability across the transmission fleet was 99.61% for the full year, supported by a digital asset management platform called DigiGrid (built with IBM) that uses predictive maintenance and AI-powered image analysis to spot a failing component before it trips a line. ## 2. Solar generation: the first layer of growth **IndiGrid owns 1.5 gigawatt-peak of solar plants across eight states, selling every unit of electricity under 25-year fixed-tariff contracts to government-backed buyers.** - **Bought, not built from scratch** - the solar portfolio was assembled through two transformative acquisitions: the first renewable purchase by any InvIT in India (100 MW from Fotowatio in 2021) and the takeover of Virescent Renewable Energy Trust in 2023, which added 16 operating projects and scaled solar capacity roughly eightfold overnight. A further 300 MW plant in Rajasthan was acquired from ReNew in FY24. - **The customer list is all government** - every power purchase agreement is with a state or central government entity such as SECI, NTPC Vidyut Vyapar Nigam, or the state electricity boards of Gujarat, Uttar Pradesh, Tamil Nadu, Madhya Pradesh, and Punjab. The tariff is fixed for the full 25 years, so there is no merchant risk or price negotiation halfway through. - **Collection is strong but not perfect** - payment collection efficiency for solar assets was 97% in the latest quarter, reflecting the reality that state electricity boards can be slower payers than the central transmission pool that backs the transmission business. ## 3. Battery energy storage: the bet on evening peaks **IndiGrid has begun building and operating grid-scale batteries that charge when power is cheap and discharge when the grid is stressed, earning a fixed tariff under 12-year contracts.** - **A small but operational fleet** - as of early 2026, the trust had roughly 2.5 gigawatt-hours of battery storage capacity at various stages, with two projects already commissioned totaling about 440 megawatt-hours: a 20 MW/40 MWh facility in Delhi and a 180 MW/360 MWh plant in Gujarat, described as one of India’s largest standalone battery installations at a single location. - **The revenue model mirrors transmission** - each battery project operates under a long-term fixed-tariff contract (called a Battery Energy Storage Purchase Agreement) with a state or central entity, lasting 12 to 15 years. The Delhi plant’s availability was 98.55% in its first full quarter, described as well above the contractual requirement. - **Batteries are imported, but price risk is locked early** - because India lacks utility-scale battery manufacturing, cells and modules are sourced from China, with assembly done domestically. IndiGrid’s approach is to lock in battery and equipment prices immediately after winning a bid, rather than gambling on future price declines. - **No replacement needed during the contract** - battery degradation is factored into the design from the start, so the 12-year project life does not require a costly mid-life battery swap. # EnerGrid: the pipeline of projects under construction **A separate portfolio of nine under-construction transmission and battery storage projects sits outside the trust, being developed for potential future acquisition once they are completed and earning.** - **Held at arm’s length** - the under-construction assets are housed in Enerica Infra 4 Private Limited, a vehicle that is not yet part of IndiGrid’s corporate structure, with a proposed acquisition enterprise value of approximately ₹7,560 crore. - **Five transmission and four battery projects** - the pipeline includes greenfield transmission wins such as Kallam Transco and Ratle Kiru Power Transmission, as well as the Gujarat and Rajasthan battery storage projects that will eventually feed into the operational BESS fleet. - **A partnership model funds the build** - IndiGrid has a joint venture with British International Investment and Norfund (the Norwegian development finance institution) for three greenfield projects, with the partners investing directly at the formation stage, reducing the capital IndiGrid needs to commit before a project is ready. # Group structure and partners **The trust is a listed vehicle with KKR as its sole sponsor and investment manager, holding all its operating assets through three wholly-owned holding companies that separate the portfolio into distinct borrowing and cash-flow cohorts.** - **KKR controls the manager and is the sponsor** - IndiGrid Investment Managers Limited, the entity responsible for running the trust and making acquisition decisions, is 100% owned by KKR through its affiliate Electron IM, and KKR’s Esoteric II Pte. Ltd. is the sole sponsor after Sterlite Power was declassified in mid-2023. - **Three holding companies, three cohorts** - the operating assets are held through IndiGrid Limited (Cohort 1: 5 transmission assets), IndiGrid 1 Limited (Cohort 2: 7 transmission, 10 solar, and 2 BESS assets), and IndiGrid 2 Private Limited (Cohort 3: 7 transmission and 4 solar assets), all 100% owned by the trust. - **A joint venture with the national grid operator** - the Parbati Koldam transmission asset is held in a 74:26 partnership with Power Grid Corporation of India, operating under a cost-plus tariff mechanism where the regulator determines the return. - **A right of first offer secures the pipeline** - a framework agreement with the sponsor gives IndiGrid a contractual right of first offer on assets the sponsor develops, and a separate agreement with GR Infraprojects covers the acquisition of Rajgarh Transmission once commissioned and a memorandum to jointly bid for roughly ₹5,000 crore of new transmission projects.