Good response to private transmission projects
PM News Bureau
India's maiden attempt at constructing large power
transmission lines through private sector participation has met with encouraging
response with around 30 companies expressing interest in setting up two projects
costing around Rs 6,000 crore in eastern India.
International names in the list include AES Corporation, China Light & Power and
Isolux of Spain. Prominent amongst Indian companies were Tata Power, Reliance
Energy, GMR Group, Torrent Power, Essar Power and RPG Transmission.
Power Finance Corporation Ltd, the nodal agency, will soon seek technical and
financial bids to select the private sector developers using the competitive
bidding route. The two projects currently offered are the Rs 4,200 crore
Maithon-Bokaro system to evacuate power from Damodar Valley Corporation's
upcoming Bokaro, Mejia, Maithon and Koderma projects, and a Rs 1,800 crore
scheme to enable imports from the surplus eastern and north-eastern regions into
the northern region.
Moving on the lines of the ultra mega power project series, PFC will form
special purpose vehicles (shell companies) for each transmission project. These
shell companies, incorporated as wholly-owned subsidiaries of PFC, will carry
out pre-project work before handing the project over to the private sector for
development on BOO basis.
India has planned to offer 14 large transmission projects for private sector
development in its attempt to create inter-regional transmission capacity of
37,500 mw by the end of the 11th Plan period, up from 11,450 mw as of October
2006. Power Finance Corporation and Rural Electrification Corporation will act
as nodal agencies for these projects. REC has also invited EoI for two
transmission projects that would facilitate power evacuation from NTPC's North
Karanpura and Talcher projects, respectively. The response to this EOI is
[05 February 2007]