Reliance energy wins west transmission project

New Delhi, Nov 21: Anil Ambani's Reliance Energy Transmission Limited (RETL) today bagged an order for setting up of 3,000 circuit kilometers of the 400 KV inter-state transmission lines in Maharshtra and Gujarat.

The project, that is expected to improve reliability of electricity in the western region of these two states, will be completed in three years at a cost of Rs 2,000 crores for RETL.

The whole process will bring about a drastric reduction in transmission tariffs.

The process of tariff-based competitive bidding ordered by the Central Electricity Regulatory Commission (CERC) for setting up of 400 KV inter-State transmission lines spanning a distance of over 1500 kilo meters in the Western Region states of Maharashtra and Gujarat was successfully completed yesterday, when the price bids of eight qualified bidders were opened.

Also, RETL has emerged as the lowest bidder in each of the Packages B and C, for which separate price bids were invited.

The tariff discovery in both the packages is reported to be about 25 per cent lower than the bench marked cost plus tariff. Besides RETL, China Light&Power-Gammon India, GMR-KEC, Tata Power, Larsen&Toubro, Lanco-Deepak Cables, and two Spanish consortiums, Inabensa-Abengoa and CYMI-IVRCL, were also in the fray.

RETL had earlier approached the Commission through a petition for grant of licence to build transmission system lines and sub-stations forming part of the Western Region system on cost plus basis in the manner normally executed by Power Grid.

The Commission had, however, directed Power Grid to invite tariff-based competitive bids for Packages B and C so that all interested parties had equal opportunity to participate and competition could be brought about in the setting up of transmission facilities in the country.

RETL would now be able to approach the Commission for grant of licence to build, own and operate the transmission lines, and for adoption of the tariff discovered through competitive bidding.

The successful completion of tariff-based competitive bidding under the supervision of CERC for the building of transmission system and a healthy tariff discovery is a landmark development for the power sector paving way for development of transmission sector through private sector participation in a big way.

UNI