The financing scheme for the Rs 77,000-crore national grid project has been finalised and the power ministry is set to approach the Cabinet for an infusion of Rs 3,400 crore for part-financing of the non-viable lines. Following the Cabinet approval, the long-pending project envisaging linking of the five regional grids is expected to be completed in 10 years.
A Cabinet note seeking infusion of the government equity into the project, in the form of upfront funding or a grant, has already been moved. As per the plan firmed up by the ministry, an investment of Rs 38,000 crore will be required for the current Five-Year Plan, while Rs 39,000 crore will be needed during the Eleventh Plan period.
Of the Rs 38,000 crore investment required for the current Plan period (2002-07), PowerGrid Corporation India Ltd will generate Rs 16,000 crore, while Rs 11,000 crore worth of projects are expected to be executed by private players. The private players will be adopting the independent power transmission company route. Besides, for funding the commercially non-viable power highways, an investment of Rs 11,000 crore has been estimated. The government equity will be earmarked for funding of transmission lines not linked to generation projects.
