Central transmission utility Power Grid Corporation has decided to go ahead with its agreed commissioning schedule for laying transmission network for ultra mega power projects (UMPP) even as the fate of the 4,000 mega watt power projects remain uncertain over unprecedented rise in global coal prices and high cost of credit in the domestic market.
The public sector enterprise is set to invest over R20,000 crore in developing transmission networks for all the UMPPs and is going ahead with its proposed borrowing programme for the same.
?There will not be any delay on our part for projects related to UMPPs. We have been mandated the agency for developing transmission lines and accordingly are sticking to agreed time lines without waiting to get comfort letters from generation companies,? said a PowerGrid official not willing to be quoted.
So far government has awarded four UMPPs at Mundra, Sasan, Krishnapatnam and Tilaiya. While work on Mundra UMPP, being developed by Tata Power, has progressed with first 800 mw unit expected to be commissioned by December end, work on other three projects is progressing slowly with uncertainty over the fate of Krishnapatnam project. Even for Mundra UMPP, the company has expressed difficulty with regard to full commissioning of the project as it would become unviable with a spurt international coal prices.
PowerGrid on its part has commissioned the first phase of the transmission system for evacuation of power from country’s first ultra mega power project at Mundra in Gujarat and going ahead to complete work on two other transmission lines connected with the UMPP by December. It has also awarded tenders pertaining to setting up transmission system for Sasan UMPP and finalising documents for other two ultra mega projects.
?We have commissioned about 770 circuit km (ckm) of transmission line which will be dedicated for the UMPP and help it evacuate power from two 800 mw units. Remaining transmission projects will also be completed in time providing lines that could carry upto 5,000 mw of power,? PowerGrid executive director (western region II) DS Singh said.
?The Mundra system has been completed on time (by September 29) despite challenging conditions with lines passing through creek area, severe right of way problems, and excessive water logging due to unprecedented rains. In fact, we got final approval to lay transmission line over a wildlife sanctuary as late as August 3,? said Singh.
Government has mandated PowerGrid to set up transmission system for evacuation of power from all UMPPs. Out of R20,000 crore proposed investment, R8,000-9,000 crore would be spend in 11th Five-Year Plan period and remaining in 12th Plan period when most of the UMPPs would be commissioned.