PGCIL forms Rs 800 cr JV with REL

New Delhi, Nov 1: The board of Power Grid Corporation of India (PGCIL) today approved a Rs 800 crore power transmission joint venture with Reliance Energy Limited (REL) that will help speed up electricity evacuation in the country.

The Anil Ambani owned REL holds 74 per cent in Parbati-Koldam power transmission JV.

The 453 circuit kilometers of Parbati -Koldam power transmissison line will evacuate power from NTPC and NHPC projects, sources said.

REL has power generation projects in Andhra Pradesh, Karnataka, Maharashtra, Kerala and Goa with a combined installed capacity of 941 MW.

REL had received the mandate to set up a 300-km transmission line for Parbati and Koldam projects in Himahcal Pradesh and 1,550-km transmission line project under the western region system strengthening (WRSS) scheme-II entailing an investment of Rs 2,750 crore.

PGCIL the nodal agency for both WRSS and Parbati-Koldam, had selected REL through international competitive bidding. For the 1,600 mega watt (MW) Parbati-Koldam projects, PGCIL invited bids in February 2004 and the final letter of selection was issued in December 2005.

PGCIL and Reliance Energy (REL) had floated a joint venture company for the Rs 1,500 crore projects, in which the latter holds 74 per cent.

The other public-private joint venture in transmission is the Tala hydroelectric project in Bhutan, between PGCIL and Tata Power.

The western region is facing a peak demand deficit of about 9,000 MW. As per the draft National Electricity Plan prepared by the Central Electricity Authority for transmission, power demand in the western region is expected to grow at about 7.5 per cent.

For bridging this gap, the region would have to buy power from eastern and southern states, and evacuation is possible only through the WRSS.

The 10th and 11th plan for power transmission focuses on the creation of a national grid in a phased manner by adding over 60,000 crore km of transmission network by 2012.

An integrated grid will evacuate an additional 1,00,000 mw by 2012, and carry 60 per cent of the power generated in India.

Currently inter-regional power transfer capacity is 9,000 mw which is expected to be further enhanced to 30,000 mw by 2012 through 'Transmission Super Highways' which will be created.

UNI