Narendra Modi led NDA govt bypasses bid route, PGCIL to develop 20K MW green corridor

Narendra Modi led NDA government’s emphasis on the auction route for awarding core sector contracts notwithstanding, state-owned Power Grid Corp (PGCIL) has been nominated to develop green transmission corridors for 20,000 MW of upcoming solar and wind power projects, effectively bypassing the competitive bidding route.

While PGCIL was earlier selected on a nomination basis for the execution of the Bhuj-Banasthali-Chittor-Ajmer 765 kV green corridor to harness solar energy in Gujarat, officials said that for the next leg of this corridor, PGCIL — a utility with a near monopolistic presence in the transmission sector and having a 35 per cent institutional shareholding — has been asked to extend this corridor from Ajmer (Rajasthan) to Suratgarh and Moga (Punjab), again on a nomination basis. For this leg of the project, PGCIL is learnt to be negotiating a soft loan through the Manila-based Asian Development Bank.

Under the Tariff Policy, transmission projects are required to be awarded through a competitive bidding process. The only exceptions are those lines that need to be built within a compressed time schedule or under an exigency, where the Central Transmission Utility (POSOCO) can offer these projects on a nomination basis.

 

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