The Uttar Pradesh Power Corporation Limited (UPPCL) has initiated the process for privatisation of power transmission in the state. In this connection, it has invited bids from consultant companies who will formulate the financial and technical model for the project. Seven companies — Pricewaterhouse Coopers, Ernst & Young, CRISIL (Credit Rating Information Services of India Limited), SBI Capital, Feedback Ventures, ICRA and Srei Infrastructure Finance Limited — have shown their willingness to assist the state government in its project through the public-private partnership (PPP) model.
“The corporation is evaluating their technical bids, which will be completed soon. The financial bids, which qualify, will be opened afterwards” said Navneet Sahgal, Chairman and Managing Director of UPPCL.
The corporation is working on a Rs 8,000-crore proposal for power transmission in the state. “Since we plan to add 10,000 MW of electricity generation in the next three to five years, there will be a need to strengthen and upgrade transmission as well. Therefore, this exercise,” a senior UPPCL official said.
The Centre is also working on power transmission through a PPP model for the last two years. Haryana has also, in January, initiated the process for setting up two 400 KV power sub-stations on a trial basis.
But so far, there has been hardly any private sector investment in power transmission. The maiden project in this sector was bagged by Tata Power in 2007 for laying an east-to-north transmission corridor from Bhutan to Gorakhpur.
Considering the status of private sector investment in power transmission, UPPCL authorities are happy with the response of the consultant companies. The companies, once finalised, will assist the corporation in making the financial and technical models for the project. Following this, bids from investor companies will be invited.
At present, the state has sub-stations of 765, 400, 220 and 132 KV. As per the proposal for privatisation of power transmission, the companies will set up sub-stations of 800 KV. The high-voltage sub stations will ensure better transmission and less line losses, said a technical official.
Source- Indian Express