Power Grid opposes Reliance's project

Power Grid Corporation of India Ltd today said it was opposed to Reliance Energy Transmission Ltd (RETL) setting up transmission lines and sub-stations in the western region without its collaboration.

"Power Grid has already obtained the government's permission and approval for expenditure. It is in the process of selecting a partner, on a competitive basis, for the Rs 5,000-crore project," PGCIL Chairman and Managing Director RP Singh said.

Companies are allowed to go in for joint-ventures with public sector undertaking Power Grid or as independent power transmission companies for laying the lines. Reliance Energy Transmission had applied for lines as an independent company.

Singh said Power Grid had already invited bids for the scheme, which would be implemented through the joint venture route with the public sector utility having a minority stake ranging from 26-49 per cent.

The project, to be funded in a debt-equity ratio of 70-30 per cent, is expected to start this year after the bidding process is over and will be completed by 2009.

The Central Electricity Regulatory Commission (CERC) had asked for Power Grid's comments after Reliance Energy Transmission, an arm of Reliance Energy, sought a licence to lay 20 transmission lines and set up13 sub-stations in the western region comprising Gujarat, Maharashtra, Madhya Pradesh, Goa, Chhattisgarh and Daman and Diu.

"We have submitted our recommendations to the CERC and the matter comes up for hearing on February 8," Singh said.

Power Grid has a 49 per cent stake in a joint venture with Tata Power Company in the 400 kv Tala Transmission Project, spanning 1,200 km from Bhutan to Delhi, which will involve an investment of Rs 1,100 crore.

---

Power tussle

Companies are allowed to go in for JVs with Power Grid or as independent power transmission companies for laying the lines

Reliance Energy Transmission had applied for the lines as an independent power transmission company

Power Grid says it is in the process of selecting a partner, on a competitive basis, for the Rs 5,000 crore project