The initial price bids for as many as ten interstate transmission (ISTS) schemes, proposed for development under the tariff-based competitive bidding (TBCB) mechanism, are likely to be opened in the coming weeks.
According to a special study by T&D India, between now and July 18, 2024, the initial price bids of the following ten schemes are scheduled to be opened, by current thinking. Of these, six have their bid process coordinator (BPC) as REC Power Development & Consultancy Ltd while the remaining four are being handled by PFC Consulting Ltd.
However, it may be noted that in almost all cases, the bid opening date has been postponed on multiple occasions – even stretching over two months. Therefore, in some of these cases, a further postponement of price bid opening date cannot be ruled out.
The aggregate outlay of the ten schemes, as estimated by National Committee on Transmission (NCT), is to the tune of Rs.36,000 crore.
The largest ISTS-TBCB scheme in this list is “Transmission System for Evacuation of Power from potential renewable energy zone in Khavda area of Gujarat under Phase-V (8 GW): Part A” housed under project SPV “Khavda V-A Power Transmission Ltd.” Estimated to cost nearly Rs.25,000 crore, this scheme involves the deployment of ±800kV HVDC infrastructure.
Slowdown in pace
During FY25 so far, the overall pace of the ISTS-TBCB project bidding has considerably slowed down. Much of this has been due to the code of conduct that came into force before the Lok Sabha elections 2024.
An industry source indicated that delay in the bidding process could also be caused by lack of response from potential developers as well as amendment in project scope, after the bidding process is initiated. The source explained that in some projects, feedback received from potential developers during the pre-bid meetings, could result in amendments to the RfP documents. This further prolongs the bidding process.
According to estimates made by T&D India, in FY25 so far, only three ISTS-TBCB schemes have been formally transferred to successful bidders. These are Kallam Transco Ltd (won by IndiGrid), Khavda IV-E2 Power Transmission Ltd (Power Grid Corporation of India Ltd) and NERES XVI Power Transmission Ltd (Techno Electric & Engineering).
Further, four ISTS-TBCB schemes, with an envisaged outlay of nearly Rs.11,500 crore, are pending formal transfer to the successful bidder. In each of the four cases, the letter of intent has been issued to Power Grid Corporation of India Ltd.
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