The proposed company will evacuate power from the Bhadravati power project and supply it to the state power grid. The Rs 180-crore project will include setting up of transmission lines and sub-stations. As MSEB has already announced several projects to increase generation capacity, it is now roping in as much private investment as possible.

The board's equity contribution in the joint venture will be met through its assets to be used for the project. These include its transmission lines and sub-stations at the proposed site.

The transmission company would put up two circuits of 240 kvas, one to cover the 25 km distance between Bhadravati and Chandrapur and the other to connect Bhadravati and Bhusaval via Akola, a distance of around 280 km.

The board has yet to work out the structure of the newcompany and decide on the procedure for setting it up. Plans are at a preliminary stage, sources said, adding that MSEB is seeking counsel from the Karnataka State Electricity Board which has a similar project in the state. It is also holding talks with transmission companies.

The response from potential partners has been encouraging, they added as there will be a guaranteed minimum flow of power on these transmission lines. The joint venture company will sign a power supply agreement with MSEB. As the transmission lines will be required only when the power project is completed, the board has sufficient time to structure the deal.

The 1082 mw Bhadravati power project is being implemented by the central India Power Company (CIPCO), a joint venture between Ispat group, GEC Althom and Electricite de France. The company is likely to tie up funding by the end of this year and begin construction by January.

Until now, evacuation of power from a plant and its transmission was the responsibility of the stateelectricity boards. However, the centre has permitted private investment in the sector. Power generation and distribution was open earlier for private investment including 100 per cent foreign equity participation.