Power Grid Corporation of India Ltd (PGCIL) has started dialogue with state government utilities with a view to tapping business opportunities arising from the Central government’s revamped distribution upgrade programme.
Addressing a virtual investor conference, PGCIL CMD K. Sreekant reiterated that the Central PSU was very keen in collaborating with state government utilities in improving their power T&D network.
The Central government, it may be recalled, launched a Reforms-based and Results-linked, Revamped Distribution Sector Scheme, on June 30, 2021. The scheme will have an outlay of Rs.3,03,758 crore with an estimated GBS (gross budgetary support) of Rs.97,631 crore from the Central government.
Sreekant noted that smart metering was an important area that PGCIL sought to explore. Under the aforementioned scheme, the government has targeted to install 25 crore prepaid smart meters by 2025 with a total capital outlay of Rs.1,50,000 crore (including gross budgetary support of Rs.22,500 crore).
To this effect, PGCIL has initiated discussions with state governments of Gujarat, Haryana, Madhya Pradesh, Andhra Pradesh, Himachal Pradesh and Tripura. The Central PSU is also in talks with the Union territory of Jammu & Kashmir.
On a related note, PGCIL is also pursuing opportunities arising from the infrastructure augmentation aspect. The revamped distribution sector scheme has proposed an outlay of Rs.1,50,000 crore for technical loss reduction and modernization-related works. To this effect, PGCIL is currently in talks with state governments of Madhya Pradesh, Himachal Pradesh, Gujarat, Haryana and Rajasthan.
Also read: PGCIL Commissions Khetri Transmission Scheme In Rajasthan
Joint Ventures
Apart from the two aforementioned collaborative areas where PGCIL would largely be playing the role of a consultant and service provider, K. Sreekant said that PGCIL was also interested in forming formal joint ventures with state governments. These JVs will be engaged in improving the performance of the transmission system of 33kV and above rating.
K. Sreekant mentioned that concrete developments on the state government JV front can be expected in the near future.
According to information available with T&D India, PGCIL had planned to form similar joint ventures in the past. Discussions were in progress with Bihar and Odisha governments. While the JV with Bihar government (Bihar Grid Company Ltd) was eventually formed, that with the Odisha government failed to take off.
