Power Grid plans to set up arm for energy efficiency solutions

NEW DELHI: Pursuing diversification agenda, electricity transmission utility Power Grid plans to set up an unit for providing energy efficiency solutions.

The state-owned major also intends to start manufacturing towers, conductors as well as equipment through joint ventures.

According to a corporate presentation made this month, the company plans to set up Energy Efficiency Service Company ( ESCO) to provide energy efficiency solutions.

Besides, it is mulling taking up sustainable development projects in commercial establishments.

With regard to the plan for joint ventures, the utility has inked a Memorandum of Understanding (MoU) with NALCO to explore opportunities in manufacturing conductors.

Another MoU is in place with RINL and SAIL pertaining to transmission line towers.

Meanwhile, Power Grid has finalised projects worth nearly Rs 8,800 crore for developing intra-state transmission lines through joint ventures.

In this regard, agreements have been made with Bihar and Odisha, with a total project cost of "Rs 8,790 crore" being finalised.

Further, discussion are progressing with other states for such ventures, according to the presentation.

For the 12th Five-Year Plan (2012-17) period, the company expects to shell out more than Rs 1 lakh crore towards capital expenditure. Out of that amount, it spend Rs 20,037 crore in the last financial year.

At present, the company is into transmission, grid management, consultancy and telecom segments.

In the first half of current financial year, Power Grid on standalone basis raked in a net profit of Rs 2,280 crore on revenues of Rs 7,738 crore.