Eastern Region System Strengthening Scheme – VI aimed at improving transmission system in the eastern India is likely to be completed by the third quarter of 2016. The project is being implemented by Darbhanga Motihari Transmission Co. Ltd. (DMTCL), a Special Purpose Vehicle promoted by Essel Infraprojects Ltd. DMTCL was awarded the project on build own operate and maintain basis in December last year. DMTCL had quoted an annual levelised tariff of Rs.117.37 crore.
Eastern Region System Strengthening Scheme – VI project involves design, engineering, supply, erection, commissioning and operation & maintenance of transmission lines and associated substations covering Muzaffarpur, Gorakhpur, Darbangha and Motihari. The estimated project cost is Rs.934.68 crore which would be funded in debt equity ratio of 2.08x. DMTCL is planning to enter into EPC Contract with PAN India Infraprojects Pvt. Ltd (PIIPL) which also belongs to Essel group.
However, some people are skeptical about the company meeting its time schedule as most of the approvals are still pending. Further, DMTCL is yet to acquire the land which is required in order to set up the sub-station at two places and the land at both the places belong to the farmers.
