You are here: Home » Companies » News
Business Standard

Facing slowdown, India's power grid manager eyes telecom, consultancy

PGCIL plans to expand its overseas consultancy business in neighbouring countries such as Nepal, Sri Lanka and Bangladesh

Shreya Jai  |  New Delhi 

Power Grid
Representational image

India’s state-owned behemoth and central transmission utility, of India Ltd. (PGCIL), is bearing the brunt of the slowdown in power generation and now looking to expand in different business areas. The company is planning to increase its footprint in infrastructure, overseas consultancy and transmission network for

The company’s capital work in progress has been on a downslide for past four years. Since 2015, it has come down by 41 per cent to Rs 329 billion, owing to decreasing projects. Apart from state-owned NTPC, which is adding capacity, no private power generator has applied for ‘long-term access’, or transmission connectivity for conventional generation, since 2013.

I S JH, CMD, however clarified that quantum of new transmission project has reduced but the company has strong order book of Rs 900 billion to be commissioned in the next 3 years.

“Reduction in capital work in progress is basically because we have improved our capital efficiency i.e. shortening the turn-around time by applying efficient project management techniques as well as getting support from Ministry of Power, PRAGATI review for expeditious completion of projects,” he told Business Standard.

chart

The load on the network is increasing with the rise in power demand, Jha said, which will improve the plant load factor of generating stations (the operating ratio) also.

“For now the projects that are in the market are mainly for renewable generation, generation projects, system strengthening from states and system required for change of direction for due to mismatched demand-supply planning in most cases,” Jha said.


ALSO READ: Power Grid: Strong order book to drive earnings in FY18-22, say analysts

He added (GEC) – to facilitate transmission system for — offers a great opportunity for the company as India aims to add record 175 GW of green energy by 2022.

is currently building a transmission network for 30,000 MW of green energy at an estimated cost of Rs 8 billion under GEC-I. Officials said the land is yet to be identified for the balance capacity that is being planned by the government. For GEC-II, which aims to connect mega size solar power parks with the grid, the transmission network would be offered through competitive bidding. For a stipulated generation capacity, transmission network needs to be built beforehand.

Cost for transmission system of renewable energy generation is less than that of conventional energy as they are located near to demand. At the same time, the government has reduced the ISTS charges to zero for transmitting renewable power.

While the income from transmission charges has maintained a steady growth in PGCIL, it is the and consultancy businesses that have grown more in proportion to the core power business. In 2017-18, and consultancy businesses of registered a growth of 25 per cent and 29 per cent respectively.

PGCIL plans to expand its overseas consultancy business in neighboring countries such as Nepal, Sri Lanka and Bangladesh. It is also looking at emerging markets in African and Latin American nations. PGCIL recently participated in competitive bidding in Brazil for transmission projects.

The company is in discussions with leading telecom tower such as BSNL and Indus Towers, among others, to utilise its existing infrastructure for improving reach and bandwidth connectivity.

First Published: Tue, June 19 2018. 22:31 IST
RECOMMENDED FOR YOU