There has been no movement – in terms of projects awarded or completed — in the TBCB-based power transmission landscape, during the first quarter of the current fiscal year.
The nationwide lockdown and the general disruption has had an adverse effect on ultra mega power projects under the tariff-based competitive bidding route. Based on a study using latest CEA statistics and some previously released reports, it is found that no new projects were awarded during the first quarter (April 1, 2020 to June 30, 2020). The same holds true for project completions as well.
The redeeming factor is however that construction work that had come to a halt during the lockdown situation, has now resumed. This resumption however is tentative. As of June 30, 2020, there were 22 projects under various stages of physical construction (see table). Most of these projects, have reported resumption in construction activity. All the same, there is major shortage of manpower (especially labour force) and of construction material. In projects where construction activity has restarted, following social distancing norms is impeding project progress.
Adding to the woes is the fact that the second quarter (July to September) marks the monsoon season in most parts of the country. This is the lean period, generally speaking, for construction activity. One can therefore expect resumption of construction activity to take place actively only in the third quarter (October to December) of the fiscal year.
Due to the abrupt stoppage of construction work in the lockdown months, some private developers (e.g. Sterlite Power) have already invoked the “force majeure” clause with respect to breakout of the COVID-19 pandemic.
Based on current thinking, out of the 22 TBCB power transmission projects that are under construction, around 11 are expected to be completed during the remaining months of the ongoing fiscal year, which is by March 31, 2021.
TBCB at a glance
As of June 30, 2020, a total of 54 power transmission projects were awarded under the TBCB modality. Of these, Power Grid Corporation of India Ltd (PGCIL) had the maximum of 16 projects, closely followed by Sterlite Power with 15. Adani Power came next in order with 11 projects. The remaining 12 projects were distributed amongst several private developers like Kalpataru, L&T, Essel Infra, etc.
| Status of TBCB Power Transmission | ||||
| (No. of projects; as of June 30, 2020) | ||||
| Developer | Completed | UC* | Others** | Total |
| Power Grid Corporation | 8 | 7 | 1 | 16 |
| Sterlite Power | 9 | 6 | 0 | 15 |
| Adani Transmission | 5 | 6 | 0 | 11 |
| Other Developers | 6 | 3 | 3 | 12 |
| Total | 28 | 22 | 4 | 54 |
| *Under Construction | ||||
| **Includes projects cancelled, under litigation, etc | ||||
A total of 28 projects, out of the 54, stood commissioned as of June 30, 2020. Sterlite Power had to its credit the highest number of completed projects, at nine, with PGCIL coming next in order with eight.
(Featured photograph sourced from Sterlite Power is for representation only)
