Reliance Energy and Essar Power are reportedly the only two contenders left in the fray for co-developing the Rs.500 crore Koldam Transmission Project along with Power Grid Corporation of India.

Eight companies -- both domestic and foreign -- had expressed interest in the project, but only two submitted their final bids, which were opened bids on 28 July 2004. 

Reliance has offered to pick up 74 per cent stake in the project, while Essar Power has pegged its equity participation at 51 per cent. PGCIL, while inviting bids through the international competitive bidding route, had given the choice to bidders of picking up anywhere between 51 per cent and 74 per cent. PGCIL would be retaining an equity stake of anywhere between 26 per cent and 49 per cent. The final selection of the private player would be done on 15 August 2004.

Project Background: The 400 kv Koldam transmission project would evacuate power from the 800 MW Koldam hydel project of NTPC and the 800 MW Parbati hydel project of NHPC, both in Himachal Pradesh. The project, with a debt equity ratio of 70:30, is scheduled for completion by October 2008. Power will the supply to the northern grid. This is the second transmission project of PGCIL that is being developed as a public-private partnership project, the first being the Tala Transmission line in Bhutan.

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