Getco to leverage 70% of its Rs 12,500-crore transmission expansion

The state power transmission company Gujarat Energy Transmission Corporation's (Getco's) Rs 12,500-crore expansion plan will see the utility leveraging 70% of the required funds. 

Getco will arrange 70 per cent of of the expansion plan, to be invested in annual tranches of Rs 2,500 crore over the next five years, through debt, while the rest through equity, Getco Managing Director B B Chauhan told Business Standard.

The expansion plan entails adding 10,000 circuit km (ckm) of the transmission line and construction of 400 new substations by 2022, through the extension of 2,000 ckm transmission line as well as 80 new substations annually for the next five years.

"We will be utilising our own financial sources. We will also raise some equity from the government as well as debt through banks. The ratio will be 70% debt and 30% equity. The financial closure will go on from time to time year-on-year. We have spent Rs 2,500 crore annually for the past 4-5 years. Similarly, we have now planned investment for another five years till 2021-22," Chauhan said. 

The new transmission lines will be installed across the state on the need basis, depending on the load growth in GETCO's network. The expansion, said Chauhan, will enhance efficiency and reliability of power supply in the state. 

"This year the maximum load was beyond 15,500 Mw and is expected to grow further in October by 500 Mw due to agricultural demand after monsoon. Every year we experience a load growth of 7-8%. Our transmission network as on date is capable of handling power supply of 25,000 Mw. With the planned expansion, network efficiency will also improve," he added. The expansion is backed by monitoring of real-time data of assets which need to be upgraded or fresh capacity needing augmentation.

As on date, GETCO has a network of 1,770 substations and over 58,500 circuit km of the transmission line, varying in voltage class levels of 66 kilovolts (kV) to 400 kV. With the addition of 500 substations and 13,500 circuit km of the transmission line, the load handling capacity of GETCO's network is expected to grow to over 30,000-32,000 Mw, from the current 25,000 Mw.

However, according to Chauhan, the peak demand may continue to be lesser than that due to alternative eight hours of power supply for agricultural purposes in different regions. "Though the load handling capacity would go over 30,000 Mw, the peak load is expected to be lesser than that," he said.

GETCO's Transmission Top Up Plan

* To add 10,000 circuit km, 400 new substation expansion by 2022

* To spend Rs 12,500 crore over five years in annual tranches of Rs 2,500 crore

* To leverage 70% of fund requirement, in talks with lenders

* Current network stands at 58,500 ckm, 1,770 substations in Gujarat

* Network capable of handling 25,000 Mw of load, post-expansion over 30,000 Mw

GETCO is also taking inputs from the distribution companies as to where the load is increasing and more transmission network is required for the expansion. These are areas where industrial estates and power generation capacities are coming up and, hence, transmission network expansion is planned accordingly. "We are keeping an eye on new industrial estates coming up for transmission network requirement such as the Sanand GIDC, Dahej industrial area, Dholera SIR, Mandal-Becharaji SIR and Suzuki Gujarat plant, among others," Chauhan said.

The company earned an approximate revenue of Rs 2,300 crore in FY17, with a profit of over Rs 150 crore.