Tata Projects, Sterlite Grid to bid for Rs 900 crore substation project in Odisha

About five to six companies including Tata Projects, Sterlite Grid, L&T and Spanish firm Cobra Instalaciones have shown interest to bid for Rs 900 crore power substation project launched by the Odisha government,  sources said.  

“The major companies who have so far enquired about the projects are Tata Projects, Sterlite Grid, Spanish firm Cobra and L&T. However, nothing has been finalised yet as the pre-bid meet will be held on 25 October,” said a government source close to the development.

Earlier this week , the state government had launched a scheme to strengthen power distribution network and to provide seamless electricity supply in the state by announcing a Rs 2600 crore scheme that envisages setting up of 500 power substations across the state within three years.

In the first phase 178 sub-stations with 33 and 11kv capacity will be established. The tender for setting up of the substations was floated in this regard on September 25.

“Since the average cost of establishing a 33/11 kv substation and associated feeders works out to Rs 5 crore, the first phase order is worth Rs 890-900 crore,” the source said.

The companies are interested to bag the order as the project cost would be entirely borne by the state government, over and above the Rs 2400 crore infrastructure fund set up by the power distribution companies (discoms), which are reeling under severe cash crunch. The state government said huge investment from its side was necessary as the discoms can not provide upgraded distribution network within limited time period.

“Although private sector participation was allowed in electricity distribution way back in the year 1999 to achieve the objectives of technical up-gradation and infusion of necessary funds, the achievement is far from satisfactory.  The financial health of discoms being poor, it has become imperative for the state government to invest in power distribution infrastructure in order to provide quality power to the people of Odisha,”  the department of energy said in a project paper outlining the need for the fund.

For 2013-14, the state government has sanctioned an amount of Rs 100 crore. In 2014-15, it would be Rs 1000 crore and in 2015-16, Rs 1400 crore would be released for setting up of new substations and laying cable lines.

The state energy department has appointed Odisha Power Transmission Corporation Limited (OPTCL) as nodal agency for implementing the scheme. On behalf of the state government, OPTCL will manage the tender process and award the work order apart from setting up project office and appointing manpower for it. The state government said out of Rs 2600 crore project cost, six per cent would be provided to OPTCL for implementing the project.