Central transmission utility Power
Grid Corporation of India (PGCIL)
has made its entry as a developer of
transmission projects awarded on tariff based
competitive bidding. PGCIL
recently won two projects that it will
develop on BOOM basis under a
concession period. This is the first time
that PGCIL is seeing itself competing
with other contenders—very unlike its
earlier role where it was the de facto
agency for all inter-regional
transmission projects.
In late March, PGCIL won the rights
to develop the transmission system
associated with upcoming private
power generation projects at
Nagapattinam and Cuddalore in Tamil
Nadu. The transmission system
comprising 765kV single and doublecircuit
lines traversing Tamil and
Karnataka will be developed by PGCIL
in 36 months. The project was awarded
by Power Finance Corporation of
India, the nodal agency. As per the
guidelines, PGCIL has taken over the
special purpose vehicle
Nagapattinam - Madhugiri
Transmission Company Ltd that will
establish the system on BOOM basis.
Later in mid-April 2012, PGCIL
outbid private developers to clinch the
Vemagiri (Package A) transmission
system awarded by Rural
Electrification Corporation Ltd. The
765kV double-circuit transmission
system will be built in Andhra Pradesh
and will help evacuation of 5,400 mw
of gas-based power generation
capacity coming up in the Vemagiri
area, all to be fed through gas from the
Krishna-Godavari basin. Long term
agreements for gas supply have
already been entered for 5,100 mw of
capacity. The Vemagiri (Package A)
project will facilitate the transfer of
power to the southern region. The
special purpose vehicle Vemagiri
Transmission System Ltd, acquired by
PGCIL on April 18, 2012, will develop
the transmission system in 36 months.
Background: In 2006, the Union
power ministry decided to build a
series of mega power transmission
projects with private sector
participation. This was done with a
view to encourage competition
amongst developers and also to
supplement the ongoing efforts of
PGCIL. Two nodal agencies— first
Rural Electrification Corporation
(REC) and then Power Finance
Corporation (PFC)—were appointed.
After a rather hesitant start, the first
project was awarded in October 2009.
As of April 20, 2012, a total of eight
projects were awarded-four each by
the two agencies (see table.) The
successful developers include names
like Reliance Infrastructure (Anil
Ambani Group), Sterlite Technologies (Vedanta Group), a consortium of Patel Engineering, BS
Transcomm and Simplex Infrastructures; and now,
PGCIL. Sterlite has been the most successful in winning
three projects.
Untitled Document
ULTRA-MEGA POWER TRANSMISSION PROJECTS AWARDED |
Month |
SPV |
Agency |
kV |
Rs.crore |
km |
Developer(s) |
Oct 2009 |
East North Interconnection Co Ltd |
PFC |
400 |
800 |
450 |
Sterlite Technologies |
Apr 2010 |
Talcher-II Transmission Co Ltd |
REC |
400 |
1,400 |
592 |
Reliance Power Transmission |
May 2010 |
North Karanpura Transmission Co Ltd |
REC |
400 |
2,700 |
1,045 |
Reliance Power Transmission |
Jan 2011 |
Jabalpur Transmission Co Ltd |
PFC |
765 |
1,300 |
635 |
Sterlite Technologies |
Jan 2011 |
Raichur Sholapur Transmission Co Ltd |
REC |
765 |
300 |
210 |
Patel+Simplex+BS Transcomm* |
Feb 2011 |
Bhopal Dhule Transmission Co Ltd |
PFC |
765 |
900 |
1,000 |
Sterlite Technologies |
Mar 2012 |
Vemagiri Transmission System Ltd |
REC |
765 |
1,300 |
250 |
Power Grid Corporation of India |
Apr 2012 |
Nagapattinam-Madhugiri Transmission Co Ltd |
PFC |
765 |
1,025 |
250 |
Power Grid Corporation of India |
*Patel Engineering, Simplex Infrastructures, BS Transcomm;PFC=Power Finance Corporation Ltd, REC = Rural Electrification Corporation Ltd |
Both REC and PFC are in the midst of awarding more
projects in the months to come. For instance, REC is
working on two more packages (B and C) of the Vemagiri
system, and so is PFC that is working one more segment
of the Nagapattinam/Cudddalore system. These three
transmission systems are designed to operate at 765kV
levels and will together entail investment of around
Rs.4,160 crore.
Speaking to Electrical Monitor, a highly-placed
official of nodal agency REC said that Vemagiri (Package
C) is also linked to evacuation of power from gas-based
power plants in Andhra Pradesh to consumption centres
in western and northern India. However, since gas
allocation is yet uncertain, this transmission line may
take some time to get into the bidding stage. However,
Vemagiri (Package B) is will be taken up and is likely to
be bid out this fiscal year. REC is also working on another
transmission system called Hinduja (Package C), the
official said. This system will involve power evacuation
from the 1,040-mw coal-fired power plant of Hinduja
Power Corporation in Andhra Pradesh.
Inter-regional transmission lines have attracted
interest from not only Indian companies—both public
and private-but also multinationals. According to
information available with Electrical Monitor, Spainbased
companies like Elecnor and Cobra y Instalaciones
have been bidding aggressively for these transmission
projects. Apart from inter-regional projects, several
states have also initiated tariff-based bidding for intrastate
projects. Haryana, Rajasthan and Uttar Pradesh
are few in question, with Rajasthan having awarded the
highest number of projects, at three.
Untitled Document
The January 5, 2011 cutoff |
Although PGCIL's involvement was not envisaged when
the mega transmission scheme was introduced, the
scheme has acquired a new complexion due to another set
of guidelines issued last year. With effect from January 5,
2011, the power ministry made it mandatory that all power
purchases should be governed by tariff-based competitive
bidding. This virtually put an end to the practice of setting
up projects through the MoU route or through nomination
basis. It may be recalled that Central agencies like NTPC
and PGCIL had come under flak for allegedly having rushed
through their agreements before the deadline. NTPC, for
instance, formalized a series of power purchase
agreements while PGCIL expedited the signing of bulk
power transmission agreements just before the deadline of
January 5. 2011. It is therefore alleged that a large chunk of
power purchase pacts were signed unilaterally by Central
agencies with no competition from private players. |