Powergrid Corporation of India Ltd (PGCIL), India's largest power transmission utility, announced it would invest Rs 16,300 crore in two phases in Bihar to ramp up the electricity grid system of the state.
The investment would be done through a new Joint Venture (JV) company between PGCIL and Bihar State Power Holding Company Ltd (BSPHCL) called Bihar Power Grid Company Ltd.
The two sides had signed an agreement to float the JV company on Saturday. The central utility and the state Public Sector Undertaking (PSU) would have equal 50% stake each in the venture.
"This JV company will take up the works of strengthening and augmentation of transmission system in Bihar," PGCIL said in a statement issued today.
Bihar expects power availability in the state to go up to 6,000 Megawatt (Mw) by the end of the current Plan period in 2017, requiring massive upgrade of the state grid and substations.
Powergrid is currently implementing Rs 3,000 crore worth of transmission projects in Bihar. The current system strengthening will be carried out in two phases of Rs 6,300 crore and Rs 10,000 crore each.
The Navratna PSU currently owns and operates 96,000 kilometer of transmission lines and transformation capacity of 154,000 Mega Volt Ampere (MVA) across the country.
