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Anupama Airy
NEW DELHI, NOV 8: Following the recent enactment of the transmission Bill, which paved the way for private sector entry in the transmission sector, the Power Grid Corporation of India Ltd (PGCIL) has finalised the first list of transmission projects to be offered to the private sector.
Top official sources told The Financial Express that initially, PowerGrid will be offering transmission projects totalling Rs 500 crore for complete execution, operation and maintenance by the private sector. Global tenders in this regard will be floated shortly.
The detailed guidelines for the private transmission operators will be announced shortly, sources added.
Given its status of central transmission agency, PowerGrid will continue to remain the owner of these transmission lines despite the lines being executed and maintained by the private sector, sources added.
Sources disclosed that according to the guidelines, to be issued shortly by PowerGrid, on private transmission operators, "the private sectortransmission companies will be asked to finance, operate, construct, own, operate and maintain these segments. The only condition will be that the private sector transmission operators will make available the entire transmission capacity to PowerGrid Corporation and will not be concerned with the third party access and the wheeling issues".
The lines to be offered to the private sector by Power Grid Corporation include the Rs 200-crore, 400 kV Kohlapur-Ponda Line and the Rs 300-crore, 400 kV Raipur-Rourkela transmission line, connecting the eastern and the western region.
Sources said that based on its experience of working with the private sector, PowerGrid will offer another bunch of large transmission projects, categorised as `big budget projects' totalling Rs 5,200 crore, to the private sector.
However, unlike the first set of Rs 500 crore transmission projects where the private sector will be entrusted with the complete responsibility of executing, operating and maintaining the transmission lines,the second set of projects will be done by the private sector as a joint venture with PowerGrid.
The second series of projects identified are the transmission systems for the Rs 3,000 crore Hirma power project in Orissa, Rs 650 crore Cuddalore project in Tamil Nadu, Rs 800 crore Pipavav project in Gujarat and the Rs 500 crore, 400 kV Purnea-Lucknow east-north AC inter-regional link project.
Sources said that for the projects under the joint venture route, PowerGrid will settle for a minority equity stake, especially when it is felt that either the risks are too high or when the commissioning has become extremely critical and the PowerGrid/state electricity boards are not ready with the detailed project report and other bid documents.
However, in all cases, the selection of the private transmission operators will be through the competitive bid route.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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