A special study by T&D India based on official statistics released by Central Electricity Authority (CEA) suggests that in fiscal year 2021-22 (FY22), ten new interstate power transmission schemes under the TBCB modality were awarded, while eight such projects were completed.
The study indicates that the ten projects awarded went to a mixed class of developers. While Power Grid Corporation of India Ltd (PGCIL) was the most successful with five projects, Adani Power Transmission came next in order, with two projects. Sterlite Power Transmission clinched one project.
Apart from the three aforementioned seasoned developers, the TBCB landscape saw the emergence of a new developer – ReNew Power – a renewable energy company that made its foray in the power transmission development space.
It is also interesting to note that in FY22, it was for the first time that an infrastructure investment trust (InvIT) was awarded a greenfield power transmission project. So far, the two power sector InvITs – IndiGrid and PGInvIT – have developed their portfolio through acquisitions of operational assets.
The InvIT in question was IndiGrid that was awarded the interstate transmission system (ISTS) scheme envisaged by project SPV “Kallam Transmission Ltd.”
The ten projects awarded, along with their developers and estimated project cost is summarized below:
PGCIL dominates
An interesting aspect of the TBCB phenomenon in FY22 was that all the five transmission schemes won by PGCIL related to evacuation infrastructure associated with upcoming renewable energy parks in Rajasthan. Further, all the five projects of PGCIL were clinched in the first quarter (April to June) of FY22, and all the projects awarded in Q1 of FY22 went to PGCIL. The total estimated investment in PGCIL’s five projects is around Rs.5,000 crore. PGCIL clearly dominated the proceeding both in terms of number of projects and estimated investment.
Projects Commissioned
In FY22, a total of eight TBCB power transmission schemes were commissioned. Once again, PGCIL was the most successful with five projects, followed by Adani Power with two and Sterlite with a lone completion. The total completion cost of these eight projects was around Rs.9,250 crore with PGCIL accounting for a little of half of this. The largest project to be commissioned was the Rs.2,136-crore Khargone transmission scheme by Sterlite Power. Basic details of TBCB completions in FY22 are tabulated below:
Cumulative Status
As of March 31, 2022, there were 60 power transmission schemes under the TBCB route, which were either under construction or completed. This total excludes four schemes that are in limbo for a variety of reasons like project cancellation by CERC, project cancellation sought by developer, and project litigation. Of the 60 projects, 38 were commissioned as of given date, while 22 were under construction.
PGCIL and Adani Transmission had seven projects each under construction; Sterlite Power followed with five. The remaining three were distributed amongst Essel Infraprojects (the original developer), ReNew Power and IndiGrid. It may be mentioned that very recently, Resurgent Power (a joint venture co-owned by Tata Power) acquired the under-construction TBCB project of Essel Infraprojects being developed by project SPV “NRSS XXXVI Transmission Ltd.”
Developer spectrum
In terms of under-construction projects, the TBCB space, as of March 31, 2022, had five developers – PGCIL, Adani Power, Sterlite Power, Resurgent Power, ReNew Power and an InvIT, IndiGrid.
It is also interesting to note that the TBCB landscape in terms of completed (operational projects) has changed over the years in terms of ownership. This has happened due to the advent of InvITs – PGInvIT and IndiGrid – and, to some extent, due to takeovers of operational projects by developers like Apraava Energy (formerly CLP India).
Important Note: This study takes into account only interstate transmission system (ISTS) power transmission schemes, developed under the tariff-based competitive bidding route. Specifically, intrastate schemes awarded under the TBCB schemes do not form part of this study. “BPC” referred to in the first table stands for Bid Process Coordinator. Featured photograph (source: IndiGrid is for representation only).
