Jaypee joins Power Grid to setup 1,000 MW at Rs 600 cr

New Delhi, Feb 23 (UNI) Jaiprakash Hydro Power Limited (JHPL), has entered into a joint venture (JV) with Power Grid Corporation of India Ltd (PGCIL) for setting up a transmission system associated with 1,000 MW Karcham Wangtoo Hydroelectric Project at a cost of Rs 600 crore.

The JV company will be called Jaypee Powergrid Limited, wherein JHPL shall hold 74 per cent of the equity and the balance 26 per cent will be held by PGCIL.

The MoU for this JV was executed in March 2006 and the final agreements for the same were executed here yesterday.

The new company will execute the project consisting of a 230 km long Transmission Line, the same would be financed on 70:30 debt, equity ratio and would be eligible for return as per CERC norms for transmission projects.

This transmission line will consist of about 150 km stretch of hilly terrain with snowfall of upto eight feet in some stretches.

Jaypee Group is India's largest Hydropower producer in the private sector with a generation capacity of 700 MW. The Group's 300 MW BASPA-II Hydroelectric Project has been successfully delivering close of 1,300 million units annually to the national grid.

The 400 MW Vishnuprayag Hydroelectric Project has commenced generation since June 2006 and now with all its four units in operation, will deliver around 2,000 million units annually to the national grid.

The group is now executing the 1,000 MW Karcham Wangtoo Hydroelectric Project, the largest initiative in private sector hydro power development which will be completed by 2011 and would deliver 4,200 million units annually to the national grid and will result in the Group contributing 7,500 million units annually of clean and green energy to the country.

On behalf of PGCIL, Executive Director V M Kaul and on behalf of JHPL, Director S D Nailwal, signed the agreement.

UNI