Tata Power has won its second interstate transmission system (ISTS) scheme under the tariff-based competitive bidding (TBCB) modality.
In a stock exchange notification, Tata Power said that it has received the letter of intent from bid process coordinator PFC Consulting Ltd (PFCCL) to acquire project special purpose vehicle (SPV) Paradeep Transmission Ltd, which is currently a wholly-owned subsidiary of PFCCL.
The project SPV was incorporated on November 30, 2023, to develop an ISTS scheme formally called “Eastern Region Expansion Scheme — XXXIV” or “ERES-XXXIV”
Tata Power won this project under the tariff-based competitive bidding (TBCB) mechanism by annual transmission charges (tariff) of Rs.2,561.83 million.
According to information available with T&D India, three other bidders had qualified for opening of initial price bids – Power Grid Corporation of India Ltd (PGCIL), Sterlite Power and Adani Energy Solutions Ltd.
The project, with an estimated cost of Rs.2,564.24 crore, has an implementation timeframe of 24 months from the date of formal transfer of project SPV, from PFCCL to Tata Power.
The project will be developed under the BOOT (build, own, operate & transfer) mode under a 35-year concession period, and will be geographically located in Odisha.
The major project elements are:
- A new 765/400kV, 2×1500 MVA GIS substation at Paradeep in Odisha
- A 765kV double-circuit line from the proposed Paradeep GIS substation to PGCIL’s existing Angul substation in Odisha (length: 190 km)
- A 400kV double-circuit (quad) line from the proposed Paradeep GIS substation to the existing Paradeep substation of Odisha Power Transmission Corporation Ltd (length: 12 km)
Project rationale
ERES-XXXIV seeks to transmit renewable energy (RE) from outside Odisha to Paradeep – an important industrial centre in the state. This RE power will cater to production of green hydrogen and green ammonia in Odisha. The transmission scheme will also help meet the large projected demand from industrial consumers in the Paradeep region.
Second ISTS-TBCB win
For Tata Power, this would be the second greenfield ISTS project won under the TBCB mode, after having clinched “Transmission system from Rajasthan REZ Phase-IV (Part 1) (Bikaner Complex): Part C” housed under “Bikaner III Neemrana II Transmission Ltd,” now known as “TP Bikaner III Neemrana II Transmission Ltd.”
Speaking of power transmission development under the TBCB route, Tata Power this year also debuted in the intrastate transmission system (InSTS) space by winning “Jalpura Khurja Power Transmission Ltd,” – an intrastate scheme in Uttar Pradesh.
Thus, Tata Power has a greenfield TBCB-based power transmission portfolio of three projects – two interstate and one intrastate – with an aggregate estimated project outlay of Rs.4,600 crore.
Tata Power’s transmission line portfolio
Tata Power now has an overall transmission line portfolio of 6,668 ckm including 4,633 ckm in operation and 2,035 ckm under construction. Of the 2,035 ckm under construction, 1,226 ckm of transmission lines are associated with the company’s three greenfield TBCB projects (see table). It may be mentioned that the remaining 809 ckm of transmission line under construction are covered by two projects – South East UP Power Transmission Ltd (732 ckm) and NRSS XXXVI Transmission Ltd (77 km). These two projects, both TBCB, are owned by Resurgent Power Ventures Pte Ltd, in which Tata Power holds 26 per cent equity.
Also read: Tata Power wins major smart metering order in Chhattisgarh
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