Power Grid Corporation of India Ltd (PGCIL) is planning to increase its participation in the development of intrastate networks, using the joint venture and the competitive bidding routes.
According to R.K. Tyagi, Chairman & Managing Director, PGCIL, addressing an investor meet recently, the Central PSU is planning to adopt the joint venture route for the development of intrastate grids, in addition to bidding for intrastate transmission system (InSTS) under the tariff-based competitive bidding (TBCB) mechanism.
JV with Rajasthan
Tyagi said that during FY24, PGCIL reached an agreement with state transmission utility Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RVPN) to form a joint venture where PGCIL would hold 74 per cent equity, and RVPN, the remaining 26 per cent. This JV, which is currently under formalization, will be developing transmission infrastructure in Rajasthan. Initially, projects with an outlay of Rs.10,000 crore will be developed, followed by more projects subsequently, the PGCIL CMD said.
More states to follow
PGCIL is also in discussion with Transmission Corporation of Andhra Pradesh Ltd (APTransco), the state transmission utility of the southern state, for a similar joint venture, Tyagi noted. States like Assam and Uttar Pradesh will also be approached for such JVs in future, the PGCIL top official said.
Bihar Grid Company
According to information available with T&D India, PGCIL currently has a 50:50 joint venture “Bihar Grid Company Ltd” with Bihar State Power (Holding) Company Ltd being the other shareholder. This JV was formed in 2013 and has the mandate of developing an integrated and efficient intrastate power transmission system in the eastern state. It is further learnt that PGCIL was then in talks with Odisha government for a similar joint venture, which ultimately did not materialize.
InSTS-TBCB projects
PGCIL is also engaged in developing intrastate transmission system (InSTS) projects through the TBCB route. PGCIL is most active in Uttar Pradesh where it is associated with at least four intrastate projects housed under Powergrid Jawarharpur Firozabad Transmission Ltd, Powergrid Rampur Sambhal Transmission Ltd, Powergrid Meerut Simbhavali Transmission Ltd and Powergrid Gomti Yamuna Transmission Ltd. Incidentally, the last two were commissioned in FY24. In Madhya Pradesh, PGCIL is involved with an InSTS-TBCB project housed under its wholly-owned subsidiary Powergrid Bhind Guna Transmission Ltd.
Opportunity size
According to R.K. Tyagi, PGCIL estimates that it has a business opportunity size of around Rs.37,000 crore, between now and 2032, in development of intrastate power transmission projects.
It may be mentioned that the National Electricity Plan (NEP), released in early 2024, envisages capital expenditure of Rs.1,61,854 crore between FY23 and FY27, towards development of the intrastate transmission network. The NEP has projected that by end of FY27 (March 31, 2027), India’s intrastate network would reach 3.21 lakh ckm, up from 2.51 lakh ckm as of March 31, 2022. [Read more]
Consultancy services
PGCIL is also associated with Uttar Pradesh on the consultancy front. In FY24, PGCIL signed an MoU with Uttar Pradesh Power Transmission Corporation Ltd (UPPTCL) for providing consultancy services towards establishment of a state transmission asset management system, aiming at remotely operating 332 EHV substations of UPPTCL. PGCIL, in FY23, had entered into similar pacts with state transmission utilities of Odisha and Madhya Pradesh to help them set up asset management centres, which would be modeled on PGCIL’s own centralized National Transmission Asset Management Centre (NTAMC) housed at Manesar in Haryana.
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