The Hindu Business Line : 30 cos in fray for 2 transmission projects in Eastern India

Project profile
The projects are part of 14 power transmission links to be set up by developers
Developers will take it on a Build-Own-Operate (BOO) basis, after the bidding
Project to be implemented between 2009-11

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New Delhi Feb. 2 Global power majors led by AES Corporation, China Light and Power, Spanish firm Isolux Corsan and Canadian firm SNC Lavalin are among the 30 companies that have expressed interest in building two power transmission projects in the eastern region of the country.

The two projects are being implemented through a tariff-based bidding process and could entail a cumulative investment of around Rs 6,000 crore.

Besides seven international firms, domestic majors led by Tata Power, Reliance Energy Ltd, Essar Power, Torrent Power, GMR Group, L&T and RPG Transmission are in the fray, an official with the Power Finance Corporation (PFC), which is overseeing the bidding process for the projects, said. Expressions of interest for the two projects closed late on Wednesday and PFC is set to invite tariff-based bids for the two projects shortly.

The two projects are part of the 14 transmission links identified by the Centre to be set up by developers selected through a tariff-based competitive bidding model, on the same lines as in the case of the Ultra Mega power projects. The two projects — the Rs 4,200-crore Maithon-Bokaro system and the Rs 1,800-crore Eastern-Northern interconnection system — are to be implemented between 2009-11.

The first project is aimed at setting up an evacuation system for wheeling power from the 1,000 MW Maithon, 1,000 MW Kodarma, 1,000 MW Mejia and 500 MW Bokaro power plants in Jharkhand and West Bengal.

The total length of the grid lines is expected to be around 1,500 circuit-kilometres.

The second project involves putting up interconnection links for enabling import of surplus power from the North-Eastern and Eastern region to the Northern region. The total length of the grid lines to be built is around 500 circuit-kilometres.

Groundwork

The projects are to be awarded to developers on a Build-Own-Operate (BOO) basis after the bidding process. The Power Ministry had appointed PFC and Rural Electrification Corporation (REC) as nodal agencies for undertaking the initial groundwork for these projects. PFC has already set up special purpose vehicles (SPVs) for the two transmission projects and PFC and REC would subsequently set up SPVs for the remaining projects as well.

The SPVs would look into issues such as carrying out initial and detailed surveys and feasibility reports, obtaining transmission licence, obtaining right of way, site identification and land compensation, prior to the award of these projects to developers.

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