Power Grid wins Rs 7000-cr transmission project

With the winning of Vemagiri-II, the basket of large projects with PGCIL increases. PGCIL currently has close to 97 per cent of India's interstate and inter-regional electricity transmission network a

Of the two key power transmission projects put up for tariff-based competitive bidding (TBCB), state-owned Power Grid Corporation of India (PGCIL) won the Rs 7,032-crore Vemagiri-II transmission project, one of the costliest projects to come under the bidding route this year.

PGCIL emerged the lowest bidder by quoting 16 per cent lower than the next bidder.

The bidders included Adani Transmission, Sterlite Grid, Essel Infraprojects, Kalpataru Power and Gayatri Projects. The project located in Andhra Pradesh is of strategic importance to the national grid as the southern region faces congestion in power network owing to demand-supply mismatch.

Kalpataru Power Transmission bagged the second project — the Rs 2,240-crore Bhutan inter-link. The project, based in West Bengal, would help in evacuation of power from upcoming hydro projects in Bhutan. Those in the race were PowerGrid, Sterlite Grid, Adani Transmission, and Essel Infra. Rural Electrification Corporation was the designated authority for the bidding of these two projects. These projects are part of eight lines earmarked to be awarded through TBCB. The largest project worth Rs 26,000 crore was awarded to PGCIL last year on a nomination basis.

With Vemagiri-II, the basket of large projects with PGCIL has grown. Currently, PGCIL has close to 97 per cent of India’s interstate and inter-regional electricity transmission network assets. Of the Rs 1.10 lakh crore of capital expenditure for the 12th Plan, PGCIL has earmarked Rs 22,500 crore for FY16.