Power Grid Corp nominated for largest transmission line
The government has awarded a critical power transmission corridor project, connecting power-starved southern states to thermal power rich, western India, to Power Grid Corporation. This has been done by “nomination”, shunning private sector investment through an auction.
Officials in the Central Electricity Authority (CEA), Power Finance Corporation and Power Grid confirmed the development.
They added the decision was based on requests by the southern states that the central government award to Power Grid, the high voltage direct current transmission lineconnecting Chhattisgarh and Tamil Nadu.
The ministry of power had put up eight transmission contracts with a total investment of Rs 53,000 crore for rate-based global competitive bidding in September.
Later, it decided to allot the largest project of Rs 26,820 crore to the state-owned transmission company and central transmission utility.
The Central Electricity Regulatory Commission (CERC) had in 2011 ordered the power transmission projects to be awarded through rate-based competitive bids, as was the case with generation projects.