The expenditure incurred on power transmission schemes, by Central and state government utilities, appears to have revived in FY22, according to information tabled in Parliament.
According to a reply given by Union power minister R.K. Singh in the Rajya Sabha, on April 5, 2022, the total expenditure by government entities on power transmission schemes appears to have somewhat revived in FY22, after a significant dip in FY20 and FY21.
Here are some observations made by T&D India, based on the information tabled.
- During the XIII Plan period (2017-18 to 2021-22, or FY18 to FY22), the total expenditure incurred on power transmission schemes of 220kV or above stood at Rs.1,58,844 crore. Out of this, nearly 55 per cent was incurred by Central public sector companies (PGCIL and Damodar Valley Corporation) while the remaining 45 per cent was by state government utilities. Out of the Central sector investment, PGCIL accounted for practically the entire amount with DVC having a share of less than 1 per cent.
- The total expenditure saw a decline from a high of Rs.42,912 crore in FY18 to Rs.39,735 crore in FY19. It further fell to Rs.29,140 crore in FY20 and to Rs.23,194 crore in FY21. In FY22, however, there was a slight improvement with expenditure rising to Rs.23,863 crore. (It may be noted that data for FY22 is up to March 25, 2022. The final figure, up to March 31, 2022, could therefore be higher.)
- The fall in expenditure during FY20 and FY21 could be attributed to the general slowing down of activities in the wake of the pandemic.
- The actual expenditure incurred on power transmission schemes may be much higher that what is presented in the tabulation on two counts – (1) it does not take into account investment made by the private sector, which is largely in the form of transmission schemes won under the tariff-based competitive bidding (TBCB) mode and (2) it does not take into account assistance granted by the Central government to state government utilities, for power transmission infrastructure development.
- Speaking of expenditure by state government utilities, those in the Southern Region showed highest expenditure. These utilities had a share of 46 per cent in the total expenditure by all state utilities put together, during the XIII Plan period. Within the southern utilities, those of Tamil Nadu and Telangana incurred significantly high expenditure.
- In FY18, PGCIL alone accounted for 60 per cent of the total expenditure on power transmission schemes. By FY22, this share had fallen sharply to 34 per cent. This only reflects the increasing role of private sector companies in developing transmission infrastructure, once again largely interstate lines under the TBCB mode.
Notes to table:
- Only transmission schemes of 220kV or higher have been considered
- Central government utilities include PGCIL and Damodar Valley Corporation (not shown in table due to low share)
- Expenditure does not include funds allocated by the Central government
- Data for 2021-22 (FY22) is up to March 25, 2022
Featured photograph (source: IndiGrid) is for representation only
