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Private transmission projects attract 30 cos

Saturday, 03 Feb 2007
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Around 30 companies have submitted their bids and have expressed interest in developing two power transmission projects in the eastern region of the country. This include international companies led by AES Corporation, China Light and Power, Spanish firm Isolux Corsan and Canadian firm SNC Lavalin.

Besides seven international firms, domestic majors led by Tata Power, Reliance Energy, Essar Power, Torrent Power, GMR Group, L&T and RPG Transmission are in the fray. 

Expressions of interest for the two projects closed late on 31January 2007 and Power Finance Corporation is set to invite tariff-based bids for the two projects shortly. The two project will entail an investment of around Rs.6,000 crore and are to be implemented between 2009-11.

The two projects - Maithon-Bokaro system (Rs.4,200 crore) and Eastern-Northern interconnection system (Rs.1,800 crore) are being executed through a tariff-based bidding process, on the same lines as in the case of the Ultra Mega power projects.

The first project is aimed at setting up an evacuation system for wheeling power from the 1,000 MW Maithon, 1,000 MW Kodarma, 1,000 MW Mejia and 500 MW Bokaro power plants in Jharkhand and West Bengal. The total length of the grid lines is expected to be around 1,500 circuit km. 

The second project involves putting up interconnection links for enabling import of surplus power from the North-Eastern and Eastern region to the Northern region. The total length of the grid lines to be built is around 500 circuit km.

The two projects are part of the 14 transmission links identified by the Centre to be set up by developers selected through a tariff-based competitive bidding model, on the same lines as in the case of the Ultra Mega power projects. 

The projects are to be awarded to developers on a BOO basis after the bidding process. The power ministry has appointed PFC and Rural Electrification Corporation as nodal agencies for undertaking the initial groundwork for these projects. PFC has already set up special purpose vehicles for the two transmission projects and PFC and REC will subsequently set up SPVs for the remaining projects as well. The SPVs will look into issues such as carrying out initial and detailed surveys and feasibility reports, obtaining transmission license, obtaining right of way, site identification and land compensation, prior to the award of these projects to developers.

Also See:

Power ministry identifies grid lines for private cos (09-Nov-06)

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