PowerGrid to form JV with three companies

New Delhi, March 22 | Updated: Mar 23 2006, 06:13am hrs
After Tatas and Reliance, state-run PowerGrid Corp of India Ltd is set to form joint ventures with five more companies, including ONGC and Essar for setting up transmission lines in the country entailing a total investment of Rs 5,000 crore.

PowerGrid on Thursday will sign MoUs with Oil and Natural Gas Corp, Ruias-owned Essar Power, Torrent Power, Jaiprakash Group and Teesta Urja Ltd for executing transmission projects associated with their generating stations.

The total route length of these five projects would be around 5,000 circuit km and the estimated investment would be Rs 5,000 crore.

PowerGrid will retain a minority 26% stake and the developer would have the balance 74% share in the joint venture. While ONGC is setting up a 750 mw gas-fired power plant in Tripura, Essar and Torrent are building a 1,500 mw and a 1,000 mw gas-based projects in Gujarat. The joint venture with Jaiprakash Group would be for its 1,000 mw Karcham Wangtoo project in Himachal Pradesh and with Teesta Urja Ltd for its power plant in Sikkim.

Power Grid already has a transmission arrangement with Tata Power Co for the 1,020 mw Tala hydroelectric project in Bhutan, which is likely to be operational from June this year.