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Two Spanish firms in fray for UP power project

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Virendra Singh Rawat New Delhi/ Lucknow
Last Updated : Jan 20 2013 | 7:32 PM IST

PPP in transmission space to be finalised this month.

Two Spanish companies are in the fray for the proposed public-private partnership (PPP) project in the power transmission space of Uttar Pradesh.

The two firms, Isolux Corsan and Cobra Instalaciones, had qualified the request for qualification (RFQ) stage in August 2010.

They have filed their financial bids in the request for proposal (RFP) documents, which will be opened later this month.

“The PPP in the power transmission sector will be finalised in this month itself,” Navneet Sehgal , state energy secretary told Business Standard.

Although, the government had set a reserved price for the bids, it has not been disclosed. The government, however, is confident the financial bids in the region would be of Rs 10,000 crore.

“The PPP in transmission would span in the whole of UP and will be completed in 30 months,” UP Power Corporation Limited (UPPCL) Director (finance) S K Agarwal said.

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As a matter of policy, the state government is pursuing the PPP route in all the segments of power viz. generation, transmission and distribution.

While, the memoranda of understanding (MoUs) had been signed with 10 private and public sector power companies during the calendar year 2010 for setting up thermal power plants all over the state, Torrent Power took over power distribution in Agra on April 1, 2010.

Torrent had won a similar bid for Kanpur, however it had not yet materialised due to stiff opposition by the power distributers. The government had decided to bring major towns in UP under private distribution to cut losses and usher in efficiency.

Besides, UPPCL is spending Rs 1,100 crore on new sub-stations for improving the power supply scenario. The state power utility is setting up 522 new substation of 33/11 kilovolt (Kv) all over the state to prevent overloading and subsequent tripping.

The substations of 33/11 Kv are low-capacity units primarily catering to households and markets. These sub-stations are vulnerable to frequent tripping due to overloading, especially during the summers, and resulting in long duration of power supply breakdown.

The new sub-stations are being set up in Saharanpur, Meerut, Moradabad, Aligarh, Agra, Kanpur, Jhansi, Chitrakoot, Bareilly, Lucknow, Faizabad, Devipatan, Gorakhpur, Azamgarh, Mirzapur, Varanasi and Allahabad divisions.

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First Published: Jan 04 2011 | 12:56 AM IST

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