Power Grid bags Vemagiri II project in tariff based auction

State-run Power Grid Corporation Ltd (PGCIL) today said it has emerged as the successful bidder for Vemagiri II power transmission project in a tariff based auction.
"Power Grid Corporation of India Ltd has been selected as the successful bidder under tariff based competitive bidding to establish transmission system for 'strengthening of transmission system beyond Vemagiri' project on build, own operate and maintain (BOOM) basis," the company said in a regulatory filing.
The Letter of Intent (Lol) was received on October 29, it added.
The Vemagiri II project will strengthen the transmission system beyond Vemagiri and will be called Vemagiri II Transmission Ltd. It will traverse through Andhra Pradesh and Karnataka.

"The transmission project comprising 765 kV and 400 kV, D/C transmission lines is to traverse the states of Andhra Pradesh, Telangana & Karnataka and include establishment of one 765/400 kV substation in the state of Andhra Pradesh," it said.
Award of the project adds to the growing list of projects bagged by the company under tariff-based competitive bidding route by competing alongside with the private sector majors, it added.
According to a source for Vemagiri II project, PGCIL had bid very aggressively and quoted Rs 359 crore annual tariff per annum followed by Sterlite Grid (Rs 429.05 crore), Essel (Rs 459 crore) and Adani (Rs 585 crore).