REC arm setting up SPV for Vizag-Vemagiri transmission project
18 Nov 2011
The government has appointed REC Transmission Projects Company Limited (RECTPCL), a wholly owned subsidiary of Rural Electrification Corporation Limited (REC), to act as bid process coordinator for the Vizag-Vemagiri transmission project.
The Vizag-Vemagiri evacuation system for the 1040 MW project of Hinduja National Power Corporation Limited (HNPCL), involves the setting up of a 400 kV D/C (Quad) line at the generation switchyard of the Vemagiri-II pooling station; and the Khamam (new) - N'Sagar 400 kV D/C line, REC said in a filing with the Bombay Stock Exchange (BSE).
RECTPCL is in the process of incorporating a project specific special purpose vehicle (SPV) as its wholly owned subsidiary to initiate the work relating to the said transmission project.
Since RECTPCL is a wholly owned subsidiary of RECL, the board of directors of RECL, at its meeting last week, approved a proposal for incorporation of a project specific SPV as subsidiary company of RECTPCL, which will also be a subsidiary of RECL in terms of the provisions of the Companies Act, 1956.
Hinduja National Power Corporation Limited (HNPCL), a Hinduja Group company, is planning to create a power generation capacity of 10,000 MW over the next ten years, at an expected investment of $10 billion, across India. The total projected capacity will be a mix of thermal, hydro, nuclear and renewable energy.
As a first step in power sector, HNPCL is setting up a 1,040 MW coal-based merchant power plant at Vizag, in Andhra Pradesh. Government of India and the government of Andhra Pradesh are fully supporting the development of the power plant.
The project comprising the building of 2x520 MW coal-fired units has been identified by Andhra Pradesh State electricity Board (APSEB), in view of the continually rising demand for electricity in Andhra Pradesh and, more specifically, rising industrial demand in and around the city of Visakhapatnam.
Apart from AP, the project will cater to the growing power needs of the southern region, which includes some of the fastest growing economies in the country.