REL transmission projects cleared
REL has agreed to abide by PPAC’s suggestions and the agreement is likely to be signed in a week, said power ministry sources.
By Nevin John, TNN |
MUMBAI: The government has finally cleared the two transmission line projects of Reliance Energy (REL). The Rs 3,500-crore projects, including the western region system strengthening (WRSS) II and the Parbati-Koldam hydro projects in Himachal Pradesh, had been delayed due to issues raised by the public-private partnership appraisal committee (PPAC).
REL has agreed to abide by PPAC’s suggestions and the agreement is likely to be signed in a week, said power ministry sources. “It was the finance ministry, which asked for some clarification on the public-private partnership in the transmission projects. Later, the file was referred to PPAC for its consideration.
The issues regarding buyout and transfer of the projects are resolved as REL accepted PPAC’s suggestions. As per the agreement, REL will run the project without any buyout option. It means, the company should bear the losses if there is any instability. The projects will come under the build-own-operate (BOO) scheme,” said sources.
The transmission lines of Parbati and Koldam projects, both 1,600-mw projects of the National Hydroelectric Power Corporation (NHPC) and the National Thermal Power Corporation (NTPC), had been delayed for almost two years now. WRSS II, a 4,000 mw power evacuation project, has been delayed for 10 months.
Power Grid Corporation of India (PGCIL), the nodal agency for both WRSS and Parbati-Koldam, had selected private partner for the projects through the international competitive bidding process. For Parbati-Koldam, PGCIL had invited bids in November 2004 and final letter of selection was issued in December 2005. REL and PGCIL had floated a 74:26 joint venture for the Rs 1,500-crore projects.
As of now, the only public-private JV in transmission by an Indian company is the Tala hydroelectric project in Bhutan, between PGCIL and Tata Power. Reliance Energy Transmission (RETL), a subsidiary of REL, had bagged the Rs 2,000-crore WRSS II project in the country’s first international competitive bids for fixing electricity tariff. The bidding process was completed by end-2006. The project is scheduled to be commissioned by March 2010.
REL has agreed to abide by PPAC’s suggestions and the agreement is likely to be signed in a week, said power ministry sources. “It was the finance ministry, which asked for some clarification on the public-private partnership in the transmission projects. Later, the file was referred to PPAC for its consideration.
The issues regarding buyout and transfer of the projects are resolved as REL accepted PPAC’s suggestions. As per the agreement, REL will run the project without any buyout option. It means, the company should bear the losses if there is any instability. The projects will come under the build-own-operate (BOO) scheme,” said sources.
The transmission lines of Parbati and Koldam projects, both 1,600-mw projects of the National Hydroelectric Power Corporation (NHPC) and the National Thermal Power Corporation (NTPC), had been delayed for almost two years now. WRSS II, a 4,000 mw power evacuation project, has been delayed for 10 months.
Power Grid Corporation of India (PGCIL), the nodal agency for both WRSS and Parbati-Koldam, had selected private partner for the projects through the international competitive bidding process. For Parbati-Koldam, PGCIL had invited bids in November 2004 and final letter of selection was issued in December 2005. REL and PGCIL had floated a 74:26 joint venture for the Rs 1,500-crore projects.
As of now, the only public-private JV in transmission by an Indian company is the Tala hydroelectric project in Bhutan, between PGCIL and Tata Power. Reliance Energy Transmission (RETL), a subsidiary of REL, had bagged the Rs 2,000-crore WRSS II project in the country’s first international competitive bids for fixing electricity tariff. The bidding process was completed by end-2006. The project is scheduled to be commissioned by March 2010.
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