PGCIL, Tata Power Join Hands To Set Up Transmission Line

New Delhi, Nov 13: | Updated: Nov 14 2003, 05:30am hrs
In the first private-public collaboration in power transmission, Power Grid Corporation of India (PGCIL) and Tata Power have joined hands to set up 1200 km power transmission line from Siliguri in West Bengal to Mandola in Uttar Pradesh, entailing an investment of Rs 1,200 crore.

The licence for the purpose was handed on Thursday by the chairman of central electricity regulatory Commission (CERC), AK Basu to chairman of PGCIL, RP Singh. Mr Singh is also the chairman of Power Links Transmission Ltd, the new joint venture company of Tatas and PGCIL. Tata Power holds 51 per cent stake in the joint venture company while PGCIL holds the remaining 49 per cent. The managing director of Tata Power, FA Vandrewala was also present on the occasion. The project has been structured on 70:30 debt-equity ratio. The transmission tariff for this scheme would be approved by CERC on the cost plus basis.

CERC chairman (centre) AK Basu handing over transmission licence to PowerGrid chairman (right) RP Singh and MD of Tata Power FA Vandrevala in New Delhi on Thursday. FE photo
Addressing a news conference after receiving the license, Mr Singh said that Power Links is expected to achieve financial closure of the project by next month and the project is scheduled to be completed in 36 months i.e by mid 2006.

West Bengal, Bihar, Jharkhand and Sikkim in the eastern region and Haryana, Punjab, Rajasthan, UP, Jammu and Kashmir and Delhi in northern region would benefit from the project.