Tata Power Company has become the first private sector company in India to bag a transmission project by picking up 51 per cent stake in the Tala transmission project. Power Grid Corporation of India will hold the remaining 49 per cent stake in the project.

Tata Power is expected to sign the shareholders’ agreement soon.

The only other pre-qualified bidder was National Grid of the UK.

The 1,500 km long 400 kV transmission project will cross three regions – northeast , east and north. It is expected to cost around Rs.1,200 crore and would be operational by 2004-05. It is expected to be funded through a debt-equity ratio of 80:20.

The project will evacuate power from the 1,020 MW Tala hydro-electric power project in Bhutan to Delhi. The transmission lines would also carry surplus electricity from the northeastern states to power-deficit northern areas. The lines would also be used to carry electricity from Nepal, where the potential for hydro-electric projects is being explored. The lines would have the capacity to carry around 3,000 MW of power.

Meanwhile, the commissioning of the Tala power project is expected to be synchronised with the transmission project. The power project is being funded by the government of India – 60 per cent as grant and 40 per cent as loan – under a bilateral agreement between India and Bhutan.

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