Power transmission: Slow pace of projects

Firms complain of long procedural delays, especially the hurdle on land acquisition and forest clearance

The government's plans to expand electricity transmission across the country are progressing rather tardily.

Only a few projects awarded through tariff-based competitive bidding (TBCB) have achieved commissioning. In most cases, the work is yet to start, though commissioning was in 2013-2015.

These projects were awarded by Power Finance Corporation and Rural Electrification in 2010-12, under the government's plan to open the sector by awarding projects to the private sector under TBCB. State-owned Power Grid Corporation also participates in the process.

The five major projects won by the private sector were scheduled to be commissioned between 2012 and 2015; three have been. Two are by Sterlite Grid, a subsidiary of Sterlite Technologies. One of these was for enabling purchase by the northern region of surplus from the northeast and eastern regions. The other was for system strengthening in the western region. A transmission system for the Krishnapatnam (Andhra) Ultra Mega Power Project was commissioned by a consortium of companies, Raichur Sholapur Transmission Company Limited (RSTCL).

 

Delayed are lines for connecting the south with the rest of the nation, called 'Talcher-II augmentation system' and a system strengthening in the northern region' by Anil Ambani's Reliance Power Transmission Company. These were to come by September 2012-March 2013. The power evacuation system for the under-construction 4,000 Mw Kudgi thermal power station in Karnataka was awarded to Larsen & Toubro, which is yet to complete the work.

In the rest 11, which will come up during 2016-18, work is yet to begin. Even PowerGrid has extended the commissioning date for the transmission lines awarded or nominated to it, Business Standard reported in December 2014. Around 15 transmission projects to be constructed by PowerGrid are embroiled in delays as the associated generation projects have not come up, said senior government officials.

Private companies which were front-runners in winning transmission projects said there was inordinate delay in getting the necessary government clearances, with land acquisition a major hurdle. The two projects won by Reliance Power are yet to get land clearance for two years, said industry sources.

"One has to take forest and environment clearances from local authorities to the state and central level. The time taken is six to 12 months," said a senior executive of a privately owned transmission company.

Power Grid accepts that 'right of way' is a major challenge for transmission companies. "For us, being a state entity, it takes six months. For a private company, the task is uphill to get the signature of every panchayat and tehsildaar in all the villages that the line crosses," said a senior Power Grid official.

While the central government is planning to award transmission projects worth Rs 1 lakh crore in a year's time, the already awarded projects that are to come up in 2016-18 are also embroiled in similar issues, with work yet to begin.