Indian trade bodies and manufacturing associations have voiced their concerns over the entry of Chinese players in the power transmission sector. This was stated by Piyush Goyal, minister of state (independent) charge for power in the Lok Sabha recently. The minister added the government has also set up a committee to look into this issue. Let us take a look at the details. Over the past three years, there have been seven interstate power transmission projects that have attracted bids from Chinese companies. These projects are structured on the tariff-based competitive bidding (TBCB) mode with PFC Consulting Ltd (a subsidiary of Power Finance Corporation) and REC Transmission Projects Co Ltd (a subsidiary of Rural Electrification Corporation) acting as bid process coordinators.
The entry of Chinese companies in the power transmission sector is an interesting phenomenon because it suggests that Chinese companies are interested in playing the role of a “developer”. So far, Chinese companies have being content to be equipment suppliers to the Indian power industry. However, when one analyses the companies that have shown interest in the power transmission sector, there is so far only one major company – CLP India Pvt Ltd. Interestingly, this is the only Chinese company as a developer in the power generation space, which means that it is the only independent power producer with Chinese origins, currently operating in India. In the conventional thermal power sector, CLP India operates the 2×660-mw Jhajjar coal-based power plant (using supercritical technology) in Haryana. It also owns and manages the 665-mw combined cycle gas-based power plant at Paguthan in Gujarat. In fact, CLP entered India in 2002 with the acquisition of the Paguthan CCPP from Gujarat Paguthan Energy Corporation Ltd. Apart from thermal power plants, CLP has growing presence as developer of wind and solar power projects.
Indian companies have expressed concern over China’s entry in the Indian power transmission space. This time around, China is not interested in merely supplying equipment and earning “contractor” status, it is looking towards becoming a developer and operator of power transmission lines. A story by Venugopal Pillai.
Chinese Companies bidding for Power Transmission projects |
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| Year | Name of Project | Bidder |
| 2014-15 | Transmission System Strengthening associated with Vindhyachal-V | CLP India Pvt Ltd |
| 2014-15 | Transmission System Associated with Gadarwara STPS (2 x 800 MW) of NTPC (Part-A) | CLP India Pvt Ltd |
| 2014-15 | Transmission System for Connectivity Lines for Maheshwaram (Hyderabad) 765/400 kV Pooling S/S | CLP India Pvt Ltd |
| 2016-17 | Transmission system for Ultra Mega Solar Park in Fatehgarh, distt. Jaisalmer Rajasthan. | CSGI + CLP India Pvt Ltd |
| 2016-17 | New WR-NR Inter regional Corridor | CSGI + CLP India Pvt Ltd |
| 2016-17 | Eastern Region Strengthening Scheme – XXI (ERSS-XXI) | CSGI + CLP India Pvt Ltd |
| CSGI = China Southern Power Grid International | ||
In 2014-15, CLP India Pvt Ltd had independently bid for four interregional schemes—Vindhyachal (V), Gadarwara (Part A), Gadarwara (Part B) and Maheshwaram. CLP India could not clinch any of these four projects. These, incidentally, have been awarded to Indian developers including Power Grid Corporation of India.
What is interesting is that CLP India, after failing to win any projects on solo basis, has teamed up with China Southern Power Grid International (HK) Co Ltd (CSGI), a wholly-owned subsidiary of China Southern Power Grid Co Ltd, one of the two state-owned grid operators, and entrusted with power transmission and distribution in the five southern regions of China.
CLP India and CSGI, in 2016-17, bid for three projects, one of them being the transmission associated with the Jaisalmer ultra mega solar park in Rajasthan. The other two projects that the duo has bid for include the Western Region-Northern Region interconnector and the Eastern Region System ndian trade bodies and manufacturing associations have voiced their concerns over the entry of Chinese players in the power transmission sector. This was stated by Piyush Goyal, minister of state (independent) charge for power in the Lok Sabha recently. The minister added the government has also set up a committee to look into this issue.
Let us take a look at the details. Over the past three years, there have been seven interstate power transmission projects that have attracted bids from Chinese companies. These projects are structured on the tariff-based competitive bidding (TBCB) mode with PFC Consulting Ltd (a subsidiary of Power Finance Corporation) and REC Transmission Projects Co Ltd (a subsidiary of Rural Electrification Corporation) acting as bid process coordinators.
The entry of Chinese companies in the power transmission sector is an interesting phenomenon because it suggests that Chinese companies are interested in playing the role of a “developer”. So far, Chinese companies have being content to be equipment suppliers to the Indian power industry. However, when one analyses the companies that have shown interest in the power transmission sector, there is so far only one major company – CLP India Pvt Ltd. Interestingly, this is the only Chinese company as a developer in the power generation space, which means that it is the only independent power producer with Chinese origins, currently operating in India. In the conventional thermal power sector, CLP India operates the 2×660-mw Jhajjar coal-based power plant (using supercritical technology) in Haryana. It also owns and manages the 665-mw combined cycle gas-based power plant at Paguthan in Gujarat. In fact, CLP entered India in 2002 with the acquisition of the Paguthan CCPP from Gujarat Paguthan Energy Corporation Ltd. Apart from thermal power plants, CLP has growing presence as developer of wind and solar power projects.
In 2014-15, CLP India Pvt Ltd had independently bid for four interregional schemes—Vindhyachal (V), Gadarwara (Part A), Gadarwara (Part B) and Maheshwaram. CLP India could not clinch any of these four projects. These, incidentally, have been awarded to Indian developers including Power Grid Corporation of India.
What is interesting is that CLP India, after failing to win any projects on solo basis, has teamed up with China Southern Power Grid International (HK) Co Ltd (CSGI), a wholly-owned subsidiary of China Southern Power Grid Co Ltd, one of the two state-owned grid operators, and entrusted with power transmission and distribution in the five southern regions of China.
CLP India and CSGI, in 2016-17, bid for three projects, one of them being the transmission associated with the Jaisalmer ultra mega solar park in Rajasthan. The other two projects that the duo has bid for include the Western Region-Northern Region interconnector and the Eastern Region System
