The public sector major, Power Grid Corporation of India (PGCL) is ready to face competition in the power transmission business as it is gearing up for challenges in the new business environment. | |
| On the new entrants into the transmission business, S Majumdar, director (project), PGCL, said, "Private investment and players are welcome into the business." |
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| The basic issue is the huge investment and if the private players are making their way into these sector its a certainly constructive development for the country, comments Majumdar. |
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| However, he shrugged off the any threat that might emerge in the near future from new entrants into the transmission business, saying, "It is not a threatening situation and we encourage competition." |
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| According to him, after the government has taken a policy decision to allow private players into the power transmission sector, it has created possibility of competition in coming future. Presently, the PGCL is the only power transmission company in the country. PGCL is the world's third largest transmission utility company. |
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| After opening up the sector, Power Grid Corporation is also interested in JVs with private players. "We are speaking to some private investors for JV and presently we are already into some of the JV for power transmission business." |
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| Citing some of the recent JVs, Majumdar said the company have entered into a JV with private players for arranging bulk transmission of power from power generating site to deficit site. |
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| Power Grid Corporation recently joined hands with Tata Power, Jaypee Group and Torrent Power for setting up a JV for power transmission. The company is investing approximately Rs 110 crore in both the JV of Jaypee Group and Torrent Power. |
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| In JV with Torrent Power, the company is investing approximately Rs 37 crore and will hold 26 per cent in the JV. While the project cost being approximately Rs 400 crore for the power transmission JV between Torrent Power and Power Grid Corporation. |
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| The confident Majumdar further said that been a sole player in the power transmission business, it will take long time for the private player to match the kind of asset and expertise Power Grid Corporation held presently. |
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| Siting these as one of the major reason, he informs this is the reason that private player are approaching Power Grid Corporation for setting up jointly the power transmission ventures. |
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| Pointing out the excellence the company holds, he further informs that, Power Grid has been requested to undertake all the transmission of the upcoming Ultra Mega Power Project (UMPP) by the government. |
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| The company claims to have 61.875 cKM (circuit Kilometre) of transmission line and has 106 electricity sub-stations. It had completed 101 transmission projects and schemes, valued at Rs 251.8 billion. |
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| The company plans to double its investment from Rs 213.7 billion in 10th five year plan to Rs 550 billion in the 11th five year plan. |
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| The company has also diversified into telecom and consultancy business. It claims that the share of revenue from its diversified business has witness a gradual rise to its total revenue. The contributory share of revenue is 2 percent and 2.6 percent respectively from telecom and consultancy business for it current year. |
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| In telecom business, the company is primary into brandwidth network creation and untill now 19000 cKM have been covered for its brandwidth network. Majority of 60 cities are covered under its telecom business. |
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| While in consultancy business, the company provided consultancy service to countries like Nepal, Bhutan and Afganisthan. Presently, it is eyeing at other countries, which Majumdar would not like to disclose stating the reason, "It premature to disclose presently". |
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