PowerGrid to invest Rs 50,000 cr

The central transmission utility, Power Grid Corporation of India (PGCIL), proposes to invest Rs 50,000 crore for developing seven transmission corridors in the next five years. This will facilitate the smooth transmission of about 55,000 Mw, to be generated from the proposed independent power producers (IPPs) and merchant power plants (MPPs) in Chhattisgarh, Orissa and Jharkhand.

“The proposed investment of Rs 50,000 crore is over and above Rs 55,000 crore being planned for laying the inter-regional transmission capacity of 37,000 Mw by the end of the Eleventh Plan period (2011-12). PowerGrid Corporation would carry out the capital expenditure through internal accruals, borrowings from domestic and multilateral agencies and also through bond issues,” a PGCIL executive told Business Standard on the sidelines of an event here today.

The seven transmission corridors, which would comprise 800 kv and 765 kv lines, would create a long-term access for IPPs and MPPs.

The executive said PowerGrid would soon approach the Central Electricity Regulatory Commission (CERC) to seek necessary regulatory approval.

Earlier, CERC Chairman Pramod Deo said PGCIL had been asked to submit a proposal for regulatory approval for setting up the seven corridors.