Reliance Energy Transmission Ltd (RETL), the transmission arm of Reliance Energy, is set to become an inter-state transmission licensee, with the approval of the PowerGrid Corporation of India (PGCIL) board, reports DNA.
PGCIL selected Reliance Energy as a joint venture partner through international competitive bidding for setting up the transmission lines for the Parbati and Koldam hydro-electric projects in Himachal Pradesh and two projects under the Western Region System Strengthening Scheme-II (WRSS-II) in Maharashtra and Gujarat on a build, own, operate (BOO) basis. These projects would entail an investment of about Rs 3,500 crore. The two companies would sign a letter of intent for the WRSS-II project and a shareholder agreement for a joint venture for the Parbati and Koldam projects soon.
The approval for WRSS-II project, for which RTIL was selected in January 2007, was delayed since there were differences with the provisions and transfer clauses between REL and the government. "Though it was initially conceived to be on a build, own, operate and transfer (BOOT) basis for 25 years, it would now be on a BOO basis," said a source. This implies that the project might not be transferred at the end of 25 years, though RETL would have to seek a fresh licence.
The change was made since PGCIL objected to taking on the liability of buying out the private partner in case of a payment default or any other problem during the construction or developmental stage. "With REL agreeing to execute the projects without any buyout commitments and transfer clauses, the way for the projects was cleared," said a REL executive. PGCIL had selected REL as its partner in December 2005 for the 1,600 MW Parbati-Koldam project.
NTPC Ltd and National Hydro-electric Power Corporation (NHPC) are setting up the projects. Parbati-Koldam Transmission Company would transfer electricity through a 300-km line from Parbati-Koldam to Ludhiana. The project is worth Rs 800 crore. The project is scheduled for completion, matching with the associated generation projects. The power-starved states of the northern region, including the National Capital, would benefit from the transmission system.
The WRSS-II project, scheduled to be commissioned by March 2010, would benefit Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Daman & Diu, Goa and Dadar & Nagar Haveli.
The Rs 2,000-2,500 crore system-strengthening project covers a length of 1,500 km in Maharashtra, Gujarat and parts of Madhya Pradesh and will handle 4,000 MW of power.
PGCIL selected Reliance Energy as a joint venture partner through international competitive bidding for setting up the transmission lines for the Parbati and Koldam hydro-electric projects in Himachal Pradesh and two projects under the Western Region System Strengthening Scheme-II (WRSS-II) in Maharashtra and Gujarat on a build, own, operate (BOO) basis. These projects would entail an investment of about Rs 3,500 crore. The two companies would sign a letter of intent for the WRSS-II project and a shareholder agreement for a joint venture for the Parbati and Koldam projects soon.
The approval for WRSS-II project, for which RTIL was selected in January 2007, was delayed since there were differences with the provisions and transfer clauses between REL and the government. "Though it was initially conceived to be on a build, own, operate and transfer (BOOT) basis for 25 years, it would now be on a BOO basis," said a source. This implies that the project might not be transferred at the end of 25 years, though RETL would have to seek a fresh licence.
The change was made since PGCIL objected to taking on the liability of buying out the private partner in case of a payment default or any other problem during the construction or developmental stage. "With REL agreeing to execute the projects without any buyout commitments and transfer clauses, the way for the projects was cleared," said a REL executive. PGCIL had selected REL as its partner in December 2005 for the 1,600 MW Parbati-Koldam project.
NTPC Ltd and National Hydro-electric Power Corporation (NHPC) are setting up the projects. Parbati-Koldam Transmission Company would transfer electricity through a 300-km line from Parbati-Koldam to Ludhiana. The project is worth Rs 800 crore. The project is scheduled for completion, matching with the associated generation projects. The power-starved states of the northern region, including the National Capital, would benefit from the transmission system.
The WRSS-II project, scheduled to be commissioned by March 2010, would benefit Maharashtra, Gujarat, Madhya Pradesh, Chattisgarh, Daman & Diu, Goa and Dadar & Nagar Haveli.
The Rs 2,000-2,500 crore system-strengthening project covers a length of 1,500 km in Maharashtra, Gujarat and parts of Madhya Pradesh and will handle 4,000 MW of power.
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