CleanTech/ Renewable Energy, Finance, Other, Smart Grid

Power Grid Corporation inks pact with OPTCL for power carrier JV

According to reports, Power Grid Corporation of India Ltd (PGCIL), the national power carrier, has formed a joint venture (JV) with Odisha Power Transmission Company Ltd (OPTCL) to develop transmission lines in the state.

“The JV would ensure better power connectivity and less disruptions in power transmission within the state as PGCIL would bring in its world-class expertise and technology through the JV company. It also means establishment of more grid stations and more back-up facilities in case of sudden power supply failure,” said Pradip K Jena, state energy secretary.

The two power transmission utilities will have equal share in the JV company, which would take up approximately Rs 2,000 crore worth projects in Odisha, he added.

“Within seven days we will complete the procedure of registering the JV company and will apply for transmission license from OERC (Odisha Electricity Regulatory Commission),” said Jena, who is also the chairman and managing director (CMD) of state power trading company Gridco and power transmission utilityOPTCL.

PGCIL said, the JV would ensure greater efficiency in power transmission lines and thus more revenue for the company in the long run.

“The state power trading agency will get about 2,500 MW power as part of its share once all the independent power producers (IPP), whose projects are in the pipeline, start generation. As the state government is incapable of investing huge amount in setting up power transmission lines, we both decided to form a joint venture for mutual benefit,” said R N Nayak, CMD of PGCIL. Out of Rs 2,000 crore proposed investment, both the promoters would provide about Rs 200 crore each and rest Rs 1,600 crore would be met thorough loans, he informed.

At present Odisha generates around 2,800 MW power from both thermal and hydro sources to meet its average demand of 2,700 MW. It is in the process of enhancing its thermal power production at Ib thermal station by 1,320 MW through Odisha Power Generation Company (OPGC).

The tariffs for power transmission would be decided by OERC after grant of transmission license to the JV company.

As per Central Electricity Regulatory Commission (CERC) guidelines, a company would be eligible for grant of a transmission license if it has won the project by bidding for lower tariff. However, there was relaxation period untill January 5, 2013 for state transmission utilities to award transmission contract to a JV company, where the tariff is decided on actual cost and profit margin basis.



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