NEW DELHI, May 10: The Powergrid Corporation is planning to invite international competitive bidding (ICB) for the procurement of 10,000 MVAR capacitors to execute its system improvement schemes in state electricity board networks.

The Powergrid has tied up a long maturity multi-lateral loan of $100 million (approximately Rs 400 crore) from World Bank to fund this project. The state electricity boards, however have been slow in responding to the Powergrid offer which is delaying the bid. So far, only half a dozen states have responded positively to the offer, said Powergrid officiating chairman and managing director RP Singh. The bids will be invited in four phases, region wise, according to the sources. Northern region is topping the list. Procurement plans for equipments are already underway for Delhi Electricity Supply Undertaking (DESU) for which Powergrid is presently executing the system improvement plans. DESU was the first to respond to the Powergrid proposal which is designed to minimise grid collapse. Singh told The Financial Express, "procurement plans have been set in motion on urgent basis for putting up capacitors in various regions. The work will start first in the northern region. Powergrid has requested all SEBs in the country for indication of their requirement of capacitors". As per the Powergrid study a total backlog of 10,000 MVAR capacitors in the state grids exists now.

If another 10,000 MVAR capacitors are added to the system the problem of poor distribution and loadshedding could be totally eliminated. Singh said that so far Delhi, Haryana, UP, Punjab and Himachal SEBs have agreed to the Grid proposal. Each SEB on an average will have to bear around Rs 10 to 15 crore for the system improvement. This work is being taken up by the Powergrid on a no-profit no-loss basis. "Powergrid decision to take up this job on no-profit no-loss basis coupled with mobilising cheaper loan from World Bank is going to provide substantial relief to the SEBs.

The terms of repayment for these facilities have been made easier spread over a period of ten years", Singh disclosed. The installation of the capacitors will considerably improve the performance of the SEBs. As of now, system operations are highly constrained from increasing gap between demand and supply and the essential grid parameters like supply voltage and frequency constantly remaining at a precarious level. This often results in grid failure.

This situation will improve with the induction of the Powergrid system improvement equipments. The proposal is to install shut capacitors which not only contributes to bring back the system stability but also reduce the transmission losses.

The proposal which has been deliberated for long, has now got going with the Powergrid taking the initiative. It has received the clearance from the power ministry recently. The scheme will involve the installation of capacitors in the sub-transmission networks of SEBs. It is directed towards supplementing the efforts of the fund constrained SEBs by way of putting up capacitors in various substations maintained by them.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.