Essar Power Transmission Co. Ltd’s (EPTCL) power transmission project is facing cost and time overruns mainly due to delayed government approvals. EPTCL is a 100% subsidiary of Essar Power Limited and is developing a 462.5 km long Associated Transmission System (ATS) for evacuation of power generated from Essar Power M.P. Ltd (EPMPL). The project involves setting up of three transmission lines – the 336 km Mahan-Sipat line, the 104 km Gandhar- Hazira line and the 22.5 km LILO line along with a 400 KV substation at Hazira. EPMPL is setting up a 1,200 MW (2x600MW) coal based thermal power plant at Mahan, Madhya Pradesh. The proposed power plant will meet the power requirement of Essar Steel India Ltd’s integrated steel plant located at Hazira.

EPTCL had estimated the cost of the project at Rs 1,335 crore but the company had already spent Rs 1,440 crore by the end of December 2013. Further, the project was scheduled to come up by July 2012 which has now been postponed to March 2015.

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