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PGCIL’s order intake in FY20 sees RTM-TBCB balance

PGCIL

Power Grid Corporation of India (PGCIL)’s order inflow of Rs.13,414 crore in FY20 was equally balanced between RTM (regulated tariff mechanism) and TBCB (tariff-based competitive bidding) power transmission projects.

According to an investor presentation of PGCIL, accompanying the annual results for FY20, the company witnessed a total order inflow of Rs.13,414 crore in FY20. Out of this, Rs.6,599 crore (or 49.2 per cent) came from TBCB projects while the remaining Rs.6,815 crore (or 50.8 per cent) came from RTM projects.

TBCB projects are those for which PGCIL needs to bid alongside private companies. The project is awarded to that entity quoting the lowest annualized tariff. In the case of RTM, the project is awarded to PGCIL, on nomination basis, with the tariffs fixed upfront. The decision of awarding a project on RTM or TBCB basis is taken by the Empowered Committee on Transmission (ECT).

Here are some highlights of PCGIL’s TBCB portfolio:

 

 

 

 

 

 

 

To put the TBCB-based power transmission landscape in perspective, India had 50 “live” projects as of March 31, 2020. Four others were troubled projects that included two under litigation, one cancelled by CERC and one in which the private developer had sought cancellation of the project.

Of these 50 active projects, PGCIL was involved in 15. Thus, PGCIL’s market share works out to 30 per cent, in terms of number of projects. However, in terms of project size, PGCIL’s market share would be much higher as it has some highly capital-intensive projects in its portfolio. In terms of private players, Sterlite Power also had 15 projects followed by Adani Transmission with 11. The remaining 9 projects were distributed amongst several developers, prominent of these being Essel Power.

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