Nine interstate transmission schemes, under the tariff-based competitive bidding (TBCB) mechanism, were completed in calendar year 2021, according to a special study by T&D India, based on statistics released by Central Electricity Authority.
The performance in 2021 compares very favourably with that in CY2020 when four such TBCB schemes were commissioned.
The project SPVs involved in the nine projects commissioned in 2021 are:
- ERSS XXI Transmission Ltd [PGCIL]
- WR-NR Power Transmission Ltd [PGCIL]
- Powergrid Khetri Transmission System Ltd [PGCIL]
- Ajmer Phagi Transco Ltd [PGCIL]
- Fatehgarh-II Transco Ltd [PGCIL]
- Khargone Transmission Ltd [Sterlite Power]
- NER II Transmission Ltd [Sterlite Power]
- Fatehgarh Bhadla Transmission Ltd [Adani Power]
- Bikaner-Khetri Transmission Ltd [Adani Power]
As can be seen, Power Grid Corporation of India Ltd (PGCIL) was the most successful, notching five TBCB project completions in 2021. Adani Power and Sterlite Power followed with two each.
It is also noteworthy that five of the nine projects commissioned related to evacuation systems associated with upcoming renewable energy (mainly solar) projects coming up in Rajasthan.
Projects awarded
As far as new schemes are concerned, five projects were awarded and interestingly, all of them went to PGCIL. It should also be noted these five cases were clustered in the April-June quarter of 2021. In CY2020, a pandemic-afflicted year, not a single TBCB project was awarded.
The award of projects needs to accelerate so as to maintain a sizeable shelf of interstate/interregional schemes. Over the past two years, project completions have outpaced new awards. As can be seen in the discussion ahead, the number of completed projects is far more than those under execution, as of December 31, 2021.
Current position
As of December 31, 2021, a total portfolio of interstate/interregional TBCB schemes stood at 59 projects. Of these, 38 projects were completed while 17 were under execution. The remaining four projects were in limbo for various reasons like cancellation sought by the developer, scrapping of project by CERC, project litigation, etc. Of the 38 projects commissioned as of given date, PGCIL was the most successful with 14 projects followed by Sterlite Power with ten.
It must be remembered that the commissioned projects of PGCIL and Sterlite Power discussed above are with reference to these entities being the original developers. Both PGCIL and Sterlite Power have sold some of their operational TBCB power transmission projects to infrastructure investment trusts. (InvITs).
Also read: PGCIL Tops Power PSUs In FY22 Capex Target Achievement
Intrastate TBCB
The entire analysis above revolves around interstate/interregional power transmission schemes developed under the TBCB route. The information on such schemes is regularly disseminated by Central Electricity Authority (CEA).
Apart from such types of schemes, there are also intrastate power transmission schemes, structured under the TBCB philosophy. According to independent monitoring done by T&D India, there was significant traction in the intrastate sphere during 2021. PGCIL and Adani Transmission completed one intrastate scheme each, both were in Uttar Pradesh. Besides, Adani Transmission clinched one project in Madhya Pradesh. Very significantly, India Grid Trust, India’s first power sector-related InvIT, won an intrastate scheme under TBCB. This, according to information available with T&D India was the first instance of an InvIT bagging a greenfield project.
Featured photograph for representation only
