According to power ministry sources, The proposed undersea transmi-ssion line entails an invest-ment of around Rs 1,500 crore. A pre-feasibility study is being carried out by the PowerGrid Corporation for the proposed venture. So far undersea HVDC transmission lines are in place between the UK and the France for transmission of 2,000 mw. PowerGrid Corporations plan was according to the bilateral investment arrange-ment between India and Sri Lanka, sources said.
The proposed undersea transmission line could be useful for NTPC which plans to set up 500 mw imported coal-based power project at Trincomalee in Sri Lanka. PowerGrid has installed inter regional transmission capacity of 18,000 mw and plans to increase it to 37,000 mw by 2012.
PowerGrid has lined up an investment plan of Rs 55,000 crore for the same to be completed during the 11th Plan.
Earlier, power minister Sushilkumar Shinde asserted that the infamous Enron chapter was closed and more and more investors from abroad mainly from the US were keen to invest in the Indias power sector.