 "Power lines for Rs 9k crore up for bidding")
In line with the plan to award transmission projects through tariff-based competitive bidding (TBCB), the Centre will put two projects - Rs 7,032-crore Vemagiri-II transmission and Rs 2,240-crore Bhutan interlink project - under the hammer. These projects are set to attract investment for the power sector, which has been devoid of private sector participation lately.
Those eyeing Vemagiri are PowerGrid (PGCIL), Adani Transmission, Sterlite Grid, Essel Infra, Kalpataru Power and Gayatri Projects, said a senior official with Rural Electrification Corporation (REC). The project, located in Andhra Pradesh, is of strategic importance to the national grid as the south region faces congestion in power network due to lack of evacuation and demand-supply mismatch. Vemagiri is also one of the costliest projects to come under the bidding route this year.
For the Bhutan link project, the qualified bidders are PowerGrid, Sterlite Grid, Adani Transmission, Essel Infra and Kalpataru. The project, based in West Bengal, would help in evacuation of power from upcoming hydro projects in Bhutan.
REC is the designated authority for the bidding of these two projects. The date for submitting the request for proposal is October 9. These projects form part of the eight lines earmarked to be awarded through TBCB. However, the largest power transmission project of Rs 26,000 crore was awarded to state-owned PowerGrid on nomination basis. These projects come in the wake of government nominating PGCIL for big-ticket projects. Business Standard had reported in July that of the Rs 1 lakh crore of transmission projects announced to be built by the central government, less than half fall in category of competitive bidding.
| Project | Estimated Length | Estimated Cost | Bidders |
| (in Kms) | (in Rs crore) | ||
| Strengthening of transmission system beyond Vemagiri | 1111 | 7032 | Power Grid, Adani Transmission, Sterlite Grid, Essel Infraprojects, Kalptaru Power and Gayathri Projects |
| Transmission System in India to avail power supply from Bhutan | 550 | 2240 | Power Grid, Sterlite Grid, Adani Transmission, Essel Infra and Kalptaru Projects |
| Source: CEA & REC | |||
Union minister for power, coal and renewable energy Piyush Goyal said that an opportunity worth Rs 1 lakh crore projects would be opened up for transmission sector during this year. However, the first tranche of Green Corridor Project and several other projects cumulatively costing Rs 35,000 crore are nominated to PGCIL already.
Industry experts said this would lead to private players bidding aggressively for the projects on offer for them. The last bidding for four major lines in July saw stiff fight between sector majors. Adani won three and Sterlite one of the projects. Adani bid around 15 per cent lower than the second bidder. Also, in a first, state-owned Power Grid pulled out of the bidding for two projects and also didn't win any.
This bid is likely to set new trend for the sector with private companies taking lead and putting aggressive bids to win key power infra projects which have been devoid of investment for long, said a Delhi-based power market expert.
In the last bidding held in July, some noted private companies pulled out of the bidding. Sector experts said skewed opportunity is pushing away potential investors.
As opposed to the power generation sector where private sector participation is close to 30 per cent, in transmission it is 3 per cent with majority of projects owned and operated by PGCIL. The sector was opened for private participation in 2010 but the private players rue the fact that no major projects are awarded through TBCB.
