Power Grid to invite bids for projects

Power Grid Corporation of India Ltd will invite bids from private companies for projects aimed to strengthen transmission network in parts of western India region within a month, chairman and managing director R P Singh said Thursday.

The projects will entail an investment of around Rs 2,500 crore, he added. "We will call for single stage bids (from private parties) for the projects," Singh said.

The projects, covering transmission network in Gujarat and South Maharashtra, will be completed by 2009 through 100 per cent private sector participation. The projects were a matter of dispute between the corporation and Reliance Energy Ltd.

The Central Electricity Regulatory Commission had rejected Reliance Energy's petition seeking a license to lay transmission lines on its own in the region. Reliance will be allowed to participate in the bidding process as per the regulator's order.

The projects in Gujarat and south Maharashtra form part of a larger scheme that also includes Madhya Pradesh-which the corporation will execute on its own instead of inducting a joint venture partner. Singh said Power Grid will raise around Rs 2000 crore in 2005-06 via debt to fund part of its Rs 4800 crore capital expenditure programme.

State-owned Power Grid is responsible for developing and operating a national electricity grid.