 "Private players queue up to bid for intra-state transmission projects")
Tamil Nadu, Andhra Pradesh, Maharashtra, Rajasthan, Gujarat, Karnataka, Madhya Pradesh and West Bengal have firmed up plans to invest Rs 20,000 crore a year to augment their transmission networks. Kalpataru, KEC and Alstom recently bagged contracts in these states. Sterlite has secured the Rs 400 crore Maheshwaram transmission project. L&T secured a transmission and distribution work order on engineering, procurement, construction basis from Odisha Power Transmission Corporation.
Besides, private players will participate in the Rs 1 lakh crore transmission projects to be auctioned by the Centre, as announced by Union Power Minister Piyush Goyal.
“Various states are involved in transmission capacity enhancement and are placing orders. The augmentation of intra-state transmission networks will help evacuation of power. States are investing about Rs 22,000 crore annually,” KEC International Managing Director and Chief Executive Officer Vimal Kejriwal told Business Standard.
He said KEC was bidding selectively for these projects and would bid for transmission projects to be auctioned by the Centre. Over the next 12-18 months, there would be a significantly large number of transmission projects, both inter- and intra-state, being auctioned, said Sambitosh Mohapatra, partner (power and utilities), PriceWaterhouseCoopers.
“Transmission offers the best risk-return profile for investors with minimal operational issues subsequent to project execution. It provides visibility to risks which can be factored in the financial model while submitting bids. Assured cash flows for the duration of the contract period, which ranges from 25 to 35 years under various models, makes projects attractive,” he added.
THE PROJECT SO FAR
- Tamil Nadu, Andhra Pradesh, Maharashtra, Rajasthan, Gujarat, Karnataka, Madhya Pradesh and West Bengal have firmed up plans to invest Rs 20,000 crore
- Kalpataru, KEC and Alstom recently bagged contracts in these states
- L&T secured a transmission and distribution work order from Odisha Power Transmission Corporation
- Besides, private players will participate in the Rs 1 lakh crore transmission projects to be auctioned by the Centre