Power Grid Corporation, it is learnt, will invite bids from private sector companies for transmission projects in western India, within a month.

PGCIL plans to develop power transmission projects through private sector participation in Gujarat and south Maharashtra. The projects involving aggregate investment of Rs.2,500 crore will come up through 100 per cent private participation, by 2009.

It may be mentioned that these projects were embroiled in a dispute with Reliance Energy that had sought prerogative licence to lay the transmission lines in the network. The Central Electricity Regulatory Commission has since rejected Reliance Energy's demand, but has allowed the private sector power producer to participate in the bidding process.

The projects in Gujarat and south Maharashtra form part of a larger project that also involves providing grid connectivity to Madhya Pradesh. PGCIL, it is understood, will take up the implementation of the Madhya Pradesh projects on its own, instead of going in for private sector participation.

Meanwhile, PGCIL will raise around Rs.2,000 crore in 2005-06 to finance a portion of its total capital expenditure programme worth Rs.4,800 crore.