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Home News Power Sector News Krishnapatnam UMPP - REC floats international bids for transmission link

Krishnapatnam UMPP - REC floats international bids for transmission link

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Transmission LineRural Electrification Corporation (REC) has called international competitive bids for setting up power evacuation system for the 4,000 mw ultra mega power project (UMPP) at Krishnapatnam in Andhra Pradesh. Krishnapatnam project will be the first UMPP to have a private transmission link. REC’s wholly-owned subsidiary, REC Transmission Projects (RTPCL), has invited technical bids for selecting a transmission service provider through a two-stage bidding process.

The qualified bidder would be required to establish synchronous interconnection between southern region and western region under build-own-operate and maintain basis. The estimated cost of the project is immediately not known.

The transmission service provider will be required to make the project available for use by long-term transmission customer for transmission charges as specified power regulator Central Electricity Regulatory Commission. The technical bids will be opened on April 12, 2010, following which price bids would be invited from qualified bidders.

Power Finance Corporation (PFC) and REC recently concluded bidding for three projects worth Rs 5,650 crore to which over a dozen Indian and foreign companies responded. While Anil Ambani’s Reliance Power Transmission has bagged contracts for two projects bid out by REC, Sterlite Energy emerged as the lowest bidder for the PFC project.

PFC and REC will soon float tenders for three more big transmission projects.

As per the bidding document, any company with 10-year experience in development of projects, not necessarily in the power sector, can bid for the transmission project.

Companies such as Reliance Infrastructure, CESC, JSW Energy, Lanco Deepak Consortium, L&T Transco, Jindal Power, GMR Energy and Essar Power have evinced interest in the Indian transmission sector that is dominated by the public sector.

The government-run Power Grid Corporation of India (PGCIL) — the central transmission utility — alone transmits 45 per cent of the total electricity generated in the country.

Source- PTI

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