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The price is the least interesting number in POWERGRID's Rs 289.16 crore reactor award. The utility handed CG Power a single package of 27 three-phase 420 kV shunt reactors, plus design, manufacture, testing, erection supervision, commissioning and lifecycle QA. That is not an equipment sale; it is a multi-year execution commitment with the risk sitting on the supplier. Bundling this many EHV units at once quietly narrows the field to OEMs who have done it before. The money books once. The obligations run for years.

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CG Power and Industrial Solutions’ ambitious semiconductor foray has hit a transparency snag. A monitoring agency has flagged difficulties in clearly tracing the utilisation of funds raised through the company’s ₹3,000-crore Qualified Institutional Placement (QIP), citing complex routing through multiple subsidiary bank accounts.

The observation appears in the monitoring agency’s report for the quarter ended December 31, 2025, and centres on funds earmarked for CG Power’s proposed Outsourced Semiconductor Assembly and Test (OSAT) facility.

OSAT allocation: ₹1,062.85 crore, utilisation hard to verify

Under the stated objects of the July 2025 QIP, CG Power allocated ₹1,062.85 crore for investment into its subsidiary, CG Semi Pvt Ltd, to support capex for setting up the OSAT unit.

As of the end of Q3FY26, reported utilisation against this allocation stood at ₹184.67 crore, leaving a substantial ₹878.18 crore unutilised. However, the monitoring agency noted that because the funds were routed through multiple current accounts of the subsidiary—accounts that also saw numerous unrelated debit and credit transactions—it could not independently verify how much was actually deployed for OSAT activities.

As a result, the agency relied largely on management submissions and certificates provided by the statutory auditor.

The report also noted that part of the funds earlier parked in mutual funds were subsequently drawn down, with around ₹51.86 crore utilised during Q3 towards OSAT-related expenditure.

Transformer manufacturing capex sees limited progress

Another major QIP allocation of ₹856.98 crore was earmarked for capex and strategic initiatives, including the establishment of a power transformer manufacturing plant and leasehold land development.

During the December quarter, CG Power spent ₹43.36 crore towards the transformer plant. Cumulative utilisation under this object reached ₹63.44 crore by end-Q3FY26, leaving ₹793.54 crore still unutilised.

Acquisitions and corporate purposes remain untouched

Other QIP objects show minimal movement so far:

The ₹330 crore allocated for acquisitions and inorganic growth has not been utilised at all.

Under general corporate purposes (₹724.14 crore), only ₹0.03 crore has been deployed, with ₹723.91 crore still lying unused.

QIP issue-related expenses of ₹26.03 crore, however, have been fully spent.

Overall utilisation remains modest

In total, by the end of the December quarter, CG Power had utilised just ₹274.37 crore out of the ₹3,000 crore raised. A sizeable ₹2,725.63 crore remains unutilised and is currently parked in short-term instruments such as fixed deposits and liquid mutual funds.

While slow deployment is not unusual for large capex-led fundraises, the monitoring agency’s inability to independently trace OSAT-related spending due to fund-routing structures introduces an added layer of scrutiny—particularly given the strategic importance and policy focus around semiconductor manufacturing.

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Analysts should bookmark PGCIL’s 7RT19Bulk Lot-4 as a reference case for next-gen Transmission equipment tenders in India. The 30×80 MVAR 765 kV reactor buy locks in Rev-08 features like online oil drying, variable-frequency tan-delta, tight particle-count limits and explicit hotspot criteria at 110°C under overvoltage. In practical terms, these requirements mean any OEM bidding in premium Transmission equipment tenders in India must invest upfront in stronger tank fabrication, cleaner winding environments and deeper design validation.

The CG Power–BHEL face-off here also says a lot about market structure. At 765 kV, Transmission equipment tenders in India are effectively a two-horse race, and Rev-08 will likely keep the field narrow. Bulk procurement ensures manufacturing slots for corridor build-out, but it also gives PGCIL leverage to enforce tougher QA, SCADA instrumentation and logistics controls such as impact recorders and dry-air transport.For treasury teams and strategy cells tracking Transmission equipment tenders in India, the signal is clear: technical risk bar is rising faster than nominal order values. OEMs that cannot prove CIGRE-aligned design, robust DGA histories and precise surge performance will be pushed toward lower-voltage niches. Expect these norms to spill over into upcoming 765 kV transformer and reactor lots aimed at supporting renewable-heavy corridors.

SANAND, Gujarat –  O one of the nation's first end-to-end Semiconductor OSAT Pilot Line Facilities has been set up in Sanand. It was inaugurated by Union Minister for Electronics and IT, Ashwini Vaishnaw, and Gujarat Chief Minister Bhupendra Patel.  It represents a landmark leap for India's technological sovereignty, This state-of-the-art Semiconductor facility is established by CG Power in collaboration with Renesas Electronics and Stars Microelectronics. It marks a decisive step in India's ambition to become a global hub for semiconductor design, assembly, and packaging. Speaking at the inauguration, Vaishnaw highlighted the facility's critical role. "This  pilot line is where chips will be manufactured for customer qualification. Once approved, ithis Semiconductor OSAT Facility paves the way for commercial plants to begin full-scale production of qualified products seamlessly, the Minister stated. He desribed it as among the most significant milestones of the India Semiconductor Mission.

Bridging the Global Talent Gap The Minister  underscored a pressing global challenge: a projected shortfall of one million semiconductor professionals by 2032. He positioned India as the solution, stating, "India has the opportunity to bridge a significant part of this gap." To build this talent pipeline, the government has equipped 270 universities with state-of-the-art semiconductor design tools. The initiative is already yielding results. These tools have witnessed over 1.2 crore usages in 2025 alone. Notably, 20 chips designed by students from 17 institutions have been successfully fabricated at the Semi-Conductor Laboratory (SCL) in Mohali. The CG Power OSAT Semiconductor Facility: A National Asset The newly inaugurated CG Semi facility represents an investment of over ₹7,600 crore. Key features include: - Pilot Line Purpose: To produce chips for customer qualification, a vital step before commercial production. - Peak Capacity: The G1 facility aims for a peak capacity of 0.5 million units per day. - Job Creation: The project is expected to generate over 5,000 direct and indirect jobs. - Future-Ready: A larger G2 facility, with a capacity of 14.5 million units per day, is slated for completion by late 2026. Vellayan Subbiah, Chairman of CG Power, hailed the project as a "national milestone." He addes, "Every chip we make here is a step toward India’s technological sovereignty." With this launch, Gujarat cements its role as the cornerstone of India's semiconductor ambitions. It brings the vision of an 'Atmanirbhar Bharat' one step closer to reality.