OPTCL to forge JVs with MCL, OMC

After entering into a joint venture (JV) pact with Central power carrier Power Grid Corporation of India Ltd (PGCIL), the state owned Odisha Power Transmission Corporation Ltd (OPTCL) is all set to ink similar agreements with Mahanadi Coalfields Ltd (MCL) and Odisha Mining Corporation (OMC).

The decision to float JV companies with MCL and OMC has been taken for implementing intra-state transmission projects by bringing in technical expertise and easy funding arrangements.

In order to meet the requirements of intra-state transmission as well as evacuation of power from upcoming generating units, it has become imperative to develop intra-state transmission system in the state. An estimated Rs 10,000 crore is needed to develop the additional transmission capacity in the 12th Plan period.

Considering the present financial as well as organizational capability of OPTCL, handling such huge projected capital expenditure of Rs 2,000 crore per annum as against the present level of execution of Rs 200 crore value of projects is not feasible.

Hence, the board of directors of OPTCL has decided to develop the transmission projects via the JV route.

The state energy department has stipulated guidelines for JV agreements between OPTCL and other partners.

The JV company would have separate transmission license to be issued by state power regulator- Odisha Electricity Regulatory Commission (OERC). It would make available the entire transmission capacity to be created to Gridco, the state owned bulk power purchaser.

Each shareholder would subscribe to 50 per cent of the issued and paid-up equity share capital of the JV company. The financial liability of the shareholders shall be limited to any unpaid amount of the issued share capital required to be subscribed by the shareholders.

The JV company would be managed by its board of directors which will be responsible for formulating the policy in all matters and also supervise conduct of affairs and operations of the company. The board of directors of the JV company will consist of 10 directors with each JV partner nominating equal number of directors.