India plans 2,600 km new power transmission lines with private participation

The government proposes to construct 2,600 km of power transmission lines, estimated to cost around Rs6,485 crore, with private sector participation.

The decision follows recommendations by an empowered committee of the ministry of power on development of inter-state transmission lines.

The committee has recommended the setting up of five new transmission lines of an estimated length of 2,600 km through tariff-based competitive bidding, with private sector participation.

These lines will help evacuate power from the proposed coastal generation projects in Nagapattanam/ Cuddalore areas of Tamil Nadu and gas-based generation projects in Vemagiri/ Rajamundry areas in Andhra Pradesh, at an estimated cost of about Rs6,485 crore, an official release said today.  

The government has so far awarded a number of power transmission projects in different regions of the country to private bidders. These included scheme for enabling import of north-eastern region/ eastern region surplus by northern region; system strengthening common for western and northern regions, system strengthening for western region, system strengthening in northern and western regions associated with North Karanpura; Talcher-II Augmentation System and Transmission System associated with Krishnapattanam UMPP- Synchronous interconnection between southern and western regions (Part-B). These projects are expected to be completed during 12th Plan period.

Announcing the decision, minister for power Sushilkumar Shinde said the involvement of private sector in the construction of participation will help strengthen power transmission system in the country. He said the ministry of power had issued guidelines for a transparent procedure for facilitating competition in the transmission sector as far back as in 2006.