1. Major power companies in fray for 2 transmission projects worth Rs 8,000 crore

Major power companies in fray for 2 transmission projects worth Rs 8,000 crore

The last date for submission of financial bids is Friday.

By: | New Delhi | Published: October 9, 2015 12:31 AM

Major power transmission companies, including the public-sector Power Grid Corp and private-sector notables like Adani Power, Sterlite Grid, Kalpataru Power and Essel Infra, among others, are in the fray for two projects estimated to be worth over Rs 8,000 core. The last date for submission of financial bids is Friday.

One of the proposed transmission projects, Vemagiri II in Andhra Pradesh, will help increase the flow of power to the southern region to 16,000 megawatt (MW) from the current 9,000 MW. The project is one among the multiple high-capacity, inter-regional strengthening schemes identified to enable power higher flow to the south from other surplus regions. The second project in Alipurduar, West Bengal, will help evacuate hydro power from Bhutan to the eastern part of the country.

Although the current year has been the most prolific with projects worth over R15,000 crore awarded on tariff-based competitive bidding, the private companies engaged in the power transmission business have expressed disappointment as the number of projects going under the hammer do not match the promise made by power minister Piyush Goyal earlier this year. Goyal has often said that transmission projects worth over R1 lakh crore would be auctioned by the government this year.

Association of Power Producers (APP), a body that represents private power companies, wrote to the power minister last month saying, “With the award of transmission projects linked to solar parks estimated to be worth R30,000-50,000 crore to the PGCIL on the cost plus basis, the recent trend of bidding out projects appears to be reversing.”

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