India Grid Trust (IndiGrid) is India’s first infrastructure investment trust (InvIT) focused on the power sector. While IndiGrid has grown its portfolio through acquisition of power-related assets, it is interesting to note that IndiGrid is also developing a greenfield power transmission project that it won under the tariff-based competitive bidding route. In this exchange, we have Harsh Shah, CEO, India Grid Trust (IndiGrid), dedicating the conversation to IndiGrid’s first greenfield transmission project, housed under “Kallam Transmission Ltd.” An interview with Venugopal Pillai.
Let us start by confirming that Kallam Transmission Ltd is IndiGrid’s first greenfield power transmission project.
Yes, Kallam Transmission Ltd is IndiGrid’s first greenfield power transmission project.
We understand that Kallam Transmission Ltd was acquired by from REC Power Development & Consultancy Ltd (the bid process coordinator) by a consortium of IndiGrid 1 Ltd and IndiGrid 2 Ltd. Please explain the role of two entities and the need for forming a consortium.
Between IndiGrid 1 and IndiGrid 2, IndiGrid met the financial and technical qualification parameters under the RfQ and accordingly, a consortium was formed from that perspective.
Both the entities are owned by India Grid Trust, and it aligns with our current holding of other infrastructure transmission projects
Please tell us in brief about the objective of the transmission scheme housed under Kallam Transmission Ltd.
The main objective of the transmission scheme is evacuation of around 1 GW of renewable energy from RE projects in the Osmanabad region, Maharashtra. The key component is a 15-20 km transmission line that will loop-in, loop-out (LILO) into the existing Pune-Parli line owned by Adani Transmission Ltd. There will also be a 1,000 MVA substation.
What is the status of the project with respect to CERC interventions — adoption of tariff, grant of transmission licence, etc?
The tariff adoption order has been received in June 2022. The transmission licence was granted in July 2022. Other key approvals like those required under Section 68 and Section 164 have been secured. Connectivity has already been aligned for over 70 per cent of the capacity.
What are the major elements (transmission lines, substations, bus reactor, etc) entailed in the transmission scheme?
The requirement is as per the RFQ and entails
1. Establishment of 2x500MVA, 400/220kV near Kallam pooling station (PS) with the following components:
- 2x500MVA, 400/220kV
- 400kV ICT bay-2
- 220kV ICT bay-2
- 400kV line bay-4
- 220kV line bay- 4
Future space provisioning for:
- 400/220 kV ICTs along with bays: 4 nos.
- 400 kV line bays: 6 nos.
- 220kV line bays: 7 nos.
- 400 kV bus reactor along with bays: 1 no.
2. 1x125MVAr bus reactor at Kallam PS 400 kV Reactor bay -1
3. LILO of both circuits of Parli(PG) – Pune(GIS) 400kV D/c line at Kallam PS
4. Provision of new 50MVAr switchable line reactor at Kallam PS end of Kallam – Pune(GIS) 400kV D/C line
We understand that there was some concern regarding laying of OPGW on the Pune-Parli line. Could you please elaborate?
Regarding laying of OPGW on the Pune-Parli line there were clarifications which were resolved during the course of hearing of License Petition of Kallam. As per the documents available on record, the bid process coordinator (BPC), vide an amendment to the RfS, removed this installation of OPGW on Pune-Parli from the scope of Kallam project.
Also read: IndiGrid Set To Acquire Raichur-Sholapur Transmission Asset
We also learn that there were some impediments regarding land acquisition for the Kallam substation. What is the current situation? What is the broad current status of the under-construction substation?
The land has been acquired in full. As is typical in any transmission project, land acquisition is a tedious and time consuming process. However, with the help of local administration and local support from the farmers in the belt we have been successfully able to acquire the land for construction of the substation, including that for future expansion.
We have entered into a LSTK contract with a Tier-1 EPC developer for entire construction, testing and commissioning (entire equipment supply has been tied up ahead of schedule, the scope of vendor also includes testing as per IS codes and ensuring the quality of the asset is intact
All major approvals for diversion of acquired land have been obtained – CLU (change of land use) and gram sabha interactions are in process.
So, in summary, we are targeting to commission the project in line with statutory timelines.
In particular, what is the broad current status on the 400kV Pune-Parli LILO double-circuit line? Are you anticipating any challenges in securing RoW?
The line component is very small – around 18 km. We don’t expect any major challenges in obtaining RoW for the transmission line portion.
Who are the LTTCs as envisaged in the transmission service agreement?
Currently, Renew Solar Power Pvt Ltd is the only LTTC and also the lead LTTC for the project. The said company has a renewable project upcoming in the region. There is a provision for other LTTCs joining by entering as party to the pre-signed transmission services agreement
Please elaborate on any new technology, project execution techniques, etc. that IndiGrid plans to deploy on the Kallam transmission project.
We are focusing on doing the basic things right. It is an AIS substation 1,000 MVA (2×500 MVA) and project execution in 18 months requires coordination with on-site contractors and local authorities, dedicated project team, timely procurement of materials and approvals etc, which we have been meticulous in carrying out as per timelines.
In line with our philosophy of assured asset performance, all the suppliers and contractors are Tier 1 contractors of high reputation.
Additionally, all are towers have been tested prior to installation on site and meet quality standards.
In summary we are looking at doing the things right from a process perspective as well as ensuring the quality of the project is top notch.
So far during the project execution, what have been the major challenges encountered and how have they been surmounted?
Land acquisition typically is time consuming and tedious as there are limited sites and given 1 GW of renewable projects have to be evacuated in the vicinity alignment of project has to be done accordingly.
However, taking timely support of local authorities and local farmers, we were able to to acquire the land required and don’t foresee major issues in implementation of the project.
Raw material prices of commodities like steel, copper, aluminium, CRGO steel, etc have been spiraling in recent months. Do you see this having any bearing on the project completion cost?
Not really; we have appropriately hedged that contractually with our vendors.
We understand that the overall project is scheduled to commission by June 2023. Currently, do you see the project implementation on track?
Yes, we are on track. Obviously in the event of any unforeseen or force majeure conditions, we may have to consider some realignment. But that is of course, if any such eventuality does take place.
