Power transmission lures pvt cos

NEW DELHI: The power transmission sector in India, which has for long been the preserve of the state-owned transmission company PowerGrid, is now opening up to private players. As the segment loosens its rigidity, even foreign companies are showing interest here.

The Western Region System Strengthening Scheme is the acid test for the private sector companies, and the prospect of strengthening transmission lines in western India has seen nine private firms/consortia joining the fray.

This is the first time that private players will venture into the transmission segment of the power sector, on their own. Till now, there has been some participation by the private sector in transmission which has been in the nature of joint ventures with PowerGrid.

The best known is the JV with Tata Power for the Tala transmission line. This year, PowerGrid signed five MoUs with private players for joint venture companies.

The nine players which have qualified to bid for the Rs 19,000-crore project include seven consortia and two companies. GMR & KEC, Isolex & Elecnor, INABENSA & ABENGOA, Tata Power, L&T & L&T Infrastructure Development Projects are among those who have qualified, CLP & Gammon, CIMI & IVRCL, Lanco & Deepak Cables, Reliance Energy Transmission are among those who have qualified. The next round will be a techno-commercial bid, followed by a price bid. The project is likely to be awarded by the end of November.

The lines under this scheme have been identified by the central electricity authority and approved by the central regulator. PowerGrid, which is the central transmission utility, is entrusted with awarding the projects. These lines have bearing 765kV and 440kV Quad D/C, are to be reserved exclusively for the private sector.