By end of the first quarter of FY25, five interstate transmission schemes (ISTS) schemes awarded under the tariff-based competitive bidding (TBCB) mechanism are scheduled to complete, thereby capitalizing assets worth over Rs.5,000 crore.
According to a special study done by T&D India, based on official statistics released by Central Electricity Authority (CEA), a total of five ISTS-TBCB schemes involving aggregate project cost of Rs.5,062 crore are likely to be commissioned by June 30, 2024, which is the end of the first quarter (Q1: April to June) of ongoing fiscal year FY25.
While Power Grid Corporation of India Ltd (PGCIL) is the developer of two of these five schemes, two belong to Sterlite Power, and one to ReNew Transmission Ventures.
Put together, these schemes will result in around 1,545 ckm of transmission lines and 6,820 MVA of transformation (substation) capacity getting added to the interstate transmission system.
All the five schemes are facing time overrun, ranging from 6 months to around 18 months. The average time overrun for these five schemes works out to around ten months. Much of the delay, as indicated by the statistics, is attributable to right-of-way issues and other land-related impediments.
Power Grid Corporation of India
PGCIL is scheduled to commission two schemes, housed under Powergrid Bhadla Transmission Ltd and Powergrid Narela Transmission Ltd. Both the schemes are related to evacuation of renewable energy from potential RE zones in Rajasthan.
A vital element the Bhadla project is the 765kV Fatehgarh II – Bhadla II double-circuit line spanning 405 ckm. Construction of this element was severely delayed as a portion of this line fell under a potential GIB (Great Indian Bustard) zone. A Supreme Court committee suggested diversion of the transmission line route, resulting in further right-of-way issues. Originally planned to commission by December 2022, this project is now likely to complete by end-May 2024.
The Narela project, traversing Delhi, Haryana and Rajasthan, was also encumbered by serious RoW challenges, including forest clearances. The Narela project envisages 408 ckm of lines and 4,500 MVA of substation capacity.
Sterlite Power
Sterlite Power is likely to commission two projects, falling under project SPVs – Mumbai Urja Marg Ltd (formerly, Vapi-II North Lakhimpur Transmission Ltd) and Nangalbibra-Bongaigaon Transmission Ltd – by end of Q1FY25.
The Mumbai Urja Marg project has several elements, spread over Gujarat, Maharashtra and even Assam. While few of these have already been completed, others are facing delays. One important element, a 140-ckm 400kV double-circuit line from PGCIL’s Padghe substation to Kharghar, is understood to be contending with land-related issues on account of delayed clearance from PGCIL. A multi-component project, Mumbai Urja Marg Ltd aims, among other things, at improving the power supply to Mumbai by securing additional ISTS feed to Navi Mumbai.
ReNew
ReNew Transmission Ventures (part of ReNew Group) is expected to commission its second ISTS-TBCB project by end-May 2024. Being developed under “Gadag Transmission Ltd,” this project is building infrastructure for evacuation of 1 GW from the Gadag solar energy zone in Karnataka. As of March 31, 2024, while the 400/220kV Gadag substation was complete, the associated 400kV double-circuit transmission line spanning 186 ckm, was grappling with serious RoW concerns in some areas of Nidgundi, affecting tower erection work.
Incidentally, ReNew has also awarded the second phase of this scheme, for evacuation of a further 1.5 GW from the Gadag solar zone. This project, housed under “Gadag II-A Transmission Ltd,” is scheduled to commission in Q2FY25.
Featured photograph (source: Sterlite Power) is for representation only
