Powergrid Planning To Tie Up With Uk Utility

PowerGrid Corporation plans to tie up with UK-based National Grid for the proposed Rs 600 crore Mangalore evacuation project. It is awaiting a formal approval from the power ministry for the purpose.

Karnataka Electricity Board had invited tenders for the project last month. This is the first time the private sector has been invited to bid for transmission projects.

National Grid, with an operating profit of about #605 million, has a presence in over six countries. It is a wires only company, which means it only maintains and operates transmission lines.

The Karnataka Electricity Board will pick 26 per cent of equity in the Mangalore project, 54 per cent by a consortium or a single transmission company, and the balance by financial institutions.

 

The project will involve installing 200kv and 400kv lines, linking the Cogentrix power station at Mangalore with Bangalore.

The transmission lines, carrying 2,500 mw of power, will be operated by Karnataka Electricity Board and maintained by the joint venture company. It will come up on build-own-operate-maintain-and-transfer basis.

Besides having an equity holding in the joint venture company, Karnataka Electricity Board will be its customer. The projects lead promoter is required to invest at least Rs 70 crore or a minimum of 30 per cent of the total project cost.

The Karnataka SEB expects the project to come on stream by August 2000 a few months after the Cogentrix project is scheduled to start generation.