Cabinet approves Rs 8,548 cr power transmission project

The Union Cabinet today approved a power transmission project worth Rs 8,548.68 covering seven states including Andhra Pradesh, Gujarat and Maharashtra.

The Cabinet Committee on Economic Affairs (CCEA) has approved the creation of a transmission system in these states that will also covers Himachal Pradesh, Karnataka, Madhya Pradesh and Rajasthan at an estimated cost of Rs 8,548.68 crore, an official release said.

The project will have central contribution from National Clean Energy Fund (NCEF) of Rs 3,419.47 crore (which is 40 per cent of the total estimated cost of project).

The activities envisaged under the project include establishment of 48 new Grid sub-stations of different voltage levels with total transformation capacity around 17,100 MVA (Mega Volt Ampere) by installing over 7,800 ckt-kms (Circuit Kilometers) of transmission lines in these seven states.

The project is proposed to be completed within 3-5 years.

The cost on creating intra-state transmission system is proposed to be met through KfW loan (40 per cent of the total cost), NCEF grant (40 per cent of the total cost) and the remaining 20 per cent as state contribution, the statement said.

These states are rich in renewable resource potential and large capacity renewable power projects are planned there.

Creation of an intra state transmission system will facilitate evacuation of renewable power from generation stations to load centres, it added.

Government has planned to have 175 GW of power generation from renewable energy sources by 2022, which includes 100 GW from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro power.