Not a single power transmission project, under the tariff-based competitive bidding (TBCB) route, was awarded during calendar year 2020, according to latest statistics released by Central Electricity Authority (CEA).
What was widely speculated and discussed was confirmed by newly-released statistics by CEA. Calendar year 2020 (January to December) earned the dubious distinction of ending with no interstate/interregional power transmission project awarded under the TBCB modality.
The total number of TBCB projects, as of December 31, 2020, at 54, remained unchanged from their corresponding level in 2019.
Four completions
Though no projects were awarded, reflecting pandemic-induced disruption in the administrative machinery, four under-construction projects met their commissioning during the year. These projects are:
- Project Name: Strengthening of transmission system beyond Vemagiri
Project SPV: Powergrid Southern Interconnector Transmission System Ltd
Developer: Power Grid Corporation of India Ltd (PGCIL)
- Project Name: Creation of new 400kV GIS substations in Gurgaon area and Palwal as part of ISTS
Project SPV: Gurgaon Palwal Transmission Ltd
Developer: Sterlite Power
- Project Name: Transmission system strengthening in Indian system for transfer of power from new hydropower projects in Bhutan
Project SPV: Alipurduar Transmission Ltd
Developer: Kalpataru Power Transmission Ltd
- Project Name: North Eastern Region Strengthening Scheme (NERSS-VI)
Project SPV: Kohima-Mairani Transmission Ltd
Developer: Kalpataru Power Transmission Ltd
It may be noted that Kalpataru Power Transmission Ltd has planned to exit its power transmission development business. The Mumbai-headquartered company has already entered into an agreement to sell its equity stake in Alipurduar Transmission Ltd to Adani Group, and in Kohima-Mairani Transmission Ltd to CLP India.
PGCIL, Sterlite Power: Joint leaders
As of December 31, 2020, there were 54 interstate/interregional power transmission projects under the TBCB modality. Out of these, four projects are “inactive” in that one has been cancelled by CERC, one project is where the developer has requested project closure and two are those where construction has not started due to litigation.
The number of “active” TBCB projects therefore stands at 50. Of these, 29 have been completed while the remaining 21 are under construction.
In terms of number of projects, PGCIL and Sterlite Power are the joint leaders with 15 projects apiece. (This is with respect to the 50 active projects.) Adani Power came next in order with 11 projects.
A good beginning to 2021
Though CY2020 was disappointing for TBCB power transmission projects, the opening weeks of 2021 have shown very promising signs. With barely two months into the year, as many as five TBCB projects have already been awarded. Incidentally, all these five were related to evacuation infrastructure associated with upcoming solar parks in Rajasthan, and even more interestingly, all of them have gone to PGCIL. With this PGCIL is expected to substantially increase its share in the overall TBCB portfolio, at least with respect to number of projects.
The new trend
Going forward, TBCB-based power transmission projects are expected to progressively come under the ambit of infrastructure investment trusts (InvITs). There is already one power transmission-oriented InvIT in the form of “IndiGrid”. This trust has bought out several transmission assets of Sterlite Power, and even others. PGCIL very recently incorporated its InvIT and it is reported that 5-7 operational assets of PGCIL will soon be sold to the InvIT.
