Power Grid network to become operational in 2012

By Our Special Correspondent

NEW DELHI, AUG. 18. The National Power Grid network is expected to become operational in 2012 by when the Powergrid Corporation of India Limited (PGCIL) plans to add another 60,000 circuit kilometers of transmission network with an investment of $15 billion, the Minister of State for Power, Ms. Jaywanti Mehta, said here today.

Addressing a conference on power transmission, the Minister said that within the next 11 years, the capacity for inter-regional transfer of power would also be augmented and the total capacity would go up to 30,000 MW from the present capacity of 5,000 MW.

In his address at the Conference on Global Participation in the Indian National Grid, the Union Power Secretary, Mr. A.K. Basu, said transmission, energy management and convergence offered immense possibilities of private and foreign investment. He assured the delegates at the conference, about 400 from all over the country and from other countries like France, the U.S., the U.K., Germany, Sweden, Switzerland, Australia, South Africa and Spain, that necessary enabling provisions and procedures would be put in place to facilitate private and foreign investment. The grid code had already been notified by the Central regulator and this was the first step towards a more disciplined and regulated working of the grid. The participants were informed that electricity transmission was being considered as a distinct activity for which guidelines had already been announced to facilitate private sector entry. Joint ventures would be set up by sharing equity with the private investor through Independent Power Transmission Companies (IPTCs). Some projects had already been identified for private sector participation with an investment potential of about $4.8 billion and the Powergrid Corporation was already in the process of evaluating the expressions of interest forwarded by 15 Indian and foreign companies for eight power projects in different parts of the country.

From the private sector, the Chairman of the FICCI's Power Committee, Mr. Mukul Kasliwal, expressed the hope that investors would find it attractive to invest in inter-State transmission projects as these did not have significant credit risks. He pointed out that worldwide, transmission companies had latched on to convergence opportunities due to the inherent advantage of a readily available right of way along with the transmission system. Installation of overhead optical fibre network was much faster and cheaper than underground cables, Mr. Kasliwal said and emphasised that by utilising such convergence opportunities, potential investors in the transmission sector could look forward to greater returns on their investments. *

Send this article to Friends by E-Mail

Section  : National
Previous : IPPs: Normal procedure adopted
Next     : CBI files chargesheet in Century case