Tata Power Company, has entered into a 51:49 joint venture with PowerGrid Corporation of India. The joint venture company will set up India's first inter-state transmission project with private sector participation between Tala in Bhutan and Delhi.
The 1,200 km of 400 kv transmission line will be set up at an investment of Rs 1,100 crore. It will facilitate evacuation of power from the 1,020 mw Tala Hydro Electric Project in Bhutan and carry surplus power from the eastern grid to the power-starved northern grid.
Adi J Engineer, managing director, Tata Power Company and R P Singh, chairman and managing director, PowerGrid, inked the agreement in the presence of Union minister of state for power Jayawantiben Mehta.
The project will start commercial operations in 2004-05. Adi Engineer pointing out the importance of transmission in the power sector said, "The link is not just between the generation and distribution ends of the power business but also between the public and private sector."
"The Tala transmission project, being implemented with Tata Power, would facilitate inter-connection between the eastern and northern electricity grids of the country," said R P Singh.
The project has been awarded through the competitive bidding route. PowerGrid has earlier invited global competitive bids for a joint venture partner from private investors for the implementation of the transmission lines associated with the Tala Hydro project on build, own, operate and transfer basis. Tata Power Company was awarded the letter of intent for the project on October 22, 2001.
