Power Grid Corporation of India Ltd (PGCIL) has been named successful bidder in three interstate transmission system (ISTS) schemes, under the tariff-based competitive bidding (TBCB) route.
In a stock exchange filing, PGCIL said that it has received letters of intent, on April 16, 2024, for the following three ISTS-TBCB schemes:
Project: Transmission System for evacuation of power from Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/ Barmer Complex): Part C
Scope: Establishment of new 765/400/220kV pooling substation at Mandsaur, 765kV double-circuit transmission line and associated bays extension works at other existing substation in Madhya Pradesh.
Project: Transmission System for Evacuation of Power from potential renewable energy zone in Khavda area of Gujarat under Phase-IV (7GW) Part E2
Scope: Augmentation works at existing substation in Gujarat.
Project: Transmission System for evacuation of power from Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/ Barmer Complex): Part E
Scope: Establishment of new 765kV substation at Rishabhdeo, in Rajasthan, 765kV double-circuit transmission lines and associated bays extension works at other existing substations in Rajasthan and Madhya Pradesh.
These projects would be developed under the build, own, operate & transfer (BOOT) model, the stock exchange filing said.
T&D India, on April 11, 2024, had reported that bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) was expected to announce winners of five ISTS-TBCB schemes soon. While the three aforementioned schemes have now been awarded, RECPDCL is expected to announce the winners of two more schemes soon.
According to information available with T&D India, the project SPVs of the three schemes, in respective order, are:
Rajasthan IV C Power Transmission Ltd
Khavda IV-E2 Power Transmission Ltd
Rajasthan IV E Power Transmission Ltd
In each of these three projects, PGCIL was contending with Adani Energy Solutions Ltd and Sterlite Power in the final race. Besides, for Rajasthan IV C Power Transmission Ltd, Tata Power was also a qualified bidder.
RECPDCL is expected to fully transfer ownership of the three project SPVs to PGCIL in the coming days. As per the standard bid document, the transfer of SPV is expected to take place within 10 days of issuance of the letter of intent. These project SPVs are currently wholly-owned subsidiaries of RECPDCL, in turn a wholly-owned subsidiary of REC Ltd.
Project cost & implementation period
The total project cost of the three schemes is in the region of Rs.6,650 crore, according to estimates made by National Committee on Transmission (NCT). The Rajasthan IV E project has an outlay of Rs.3,251 crore while Rajasthan IV C is expected to cost Rs.2,708 crore. Both have an implementation timeframe of 24 months from the date of SPV transfer. Khavda IV-E2 is a relatively smaller project with an outlay of Rs.697 crore and an envisaged completion time of 21 months.
ISTS-TBCB in FY25
As per estimates made by T&D India, in the current fiscal year FY25 so far, one ISTS-TBCB scheme has been formally awarded in that the project SPV has been transferred to the successful bidder. The scheme in question is “Kallam Transco Ltd” and the winner is India Grid Trust (Read more).
With PGCIL getting the LoI for three ISTS-TBCB schemes as discussed in this story, the Central PSU appears to have good off to a good start in FY25. It may be mentioned that in FY24, PGCIL was the most successful ISTS-TBCB developer, clinching 10 of the 23 schemes awarded. (Read more).
Also read: PGCIL JV Seeks Licence For Indo-Nepal Cross-Border Line
Featured photograph is for representation only.
