Power Sector thread

State-run power major NTPC's trading arm NTPC Vidyut Vypar Nigam (NVVN) has been given the mandate to export 250 Mw of power from NTPC to Bangladesh.

"We are going to export 250 Mw to Bangladesh from the 15% unallocated power we have, beside, developing 1,320 Mw (2x660Mw) at Khulna through an equal JV," NTPC Chairman and Managing Director Arup Roy Choudhury said here today on the sidelines of a BNCCI-organised power seminar.

NVVN has signed the power purchase agreement with the Bangladesh Power Development Board (BPDB).
The transmission lines between India and Bangladesh are being set up under a pact signed between Power Grid Corporation of India and BPDB in July last year.

The links are expected to be in place by early 2013 and are being executed at a cost of around $190 million (around Rs 907 crore), with a capacity to wheel around 500 Mw.

The interconnection between India and Bangladesh is being established through a 500-Mw HVDC (high voltage direct current) link between India's eastern region and the western grid of Bangladesh.

Asked about the progress of the greenfield plant in Bangladesh, Choudhury said DPR had been submitted and once the coal is allocated by them the final price of power would be decided.

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French power equipment maker Alstom today said it had bagged contracts worth over Rs 270 crore for setting up three hydropower projects in India.

"Alstom secured three major contracts worth above Rs 270 crore (over 40 million euros) to build hydro-electric projects in India," a company statement said.

The first contract has been signed with Shiga Energy for the 97 Mw Tashiding hydroelectric project based in Sikkim, it said.
The second contract has been signed with NSL Tidong PowerGeneration for the Tidong I hydro-electric project, consisting of two 50-Mw units, in Kinnaur district of Himachal Pradesh.

The third contract has been signed with Haridwar Infrastructure for the Dikchu hydro-electric project on the river Dikchu in Sikkim, for a 96 Mw plant, it added.

All the equipment would be manufactured at Alstom’s Vadodara facility in Gujarat.

"With these contracts, Alstom will be able to support the government’s initiative in developing the power industry as a whole and hydro in particular as part of its commitment to reduce carbon emissions," Francois Carpentier, managing director & vice chairman, Alstom Projects India said.

These three contracts follow a major contract won by Alstom from Tehri Hydro Development Corporation (THDC) to install the 1,000 Mw Tehri hydro power plant in Uttarakhand.

The company's projects under execution include the 2,000 Mw Subansiri Lower hydro-electric power plant in Assam and Arunachal Pradesh.

Shares of Alstom closed at Rs 606.55, up 5.64% on the Bombay Stock Exchange.

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Adani Power may look at bidding for Ultra Mega Power Projects (UMPPs) and as well as coal-based power projects having a minimum generation capacity of 4,000 Mw.

"The company may evaluate UMPPs, coal-based power projects with a capacity of 4,000 Mw or above, as and when they come up for bidding," according to the company's annual report for 2010-11.

Adani Power, a part of diversified Adani group, has an ambitious plan of having a capacity of 16,500 Mw in the coming years.
As part of efforts to meet the growing electricity demand, the government is encouraging UMPPs. Each such project has a generation capacity of about 4,000 Mw, entailing an investment of about Rs 16,000 crore.

A total of 16 UMPPs have been envisaged and special purpose vehicles have been set up for 12 projects.

So far, the government has awarded four UMPPs -- Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand. Three of them -- Sasan, Krishnapatnam and Tilaiya -- are implemented by Reliance Power, while Mundra project is done by Tata Power.

Adani Power, along with its subsidiaries, has nine power projects -- having a combined capacity of 16,500 Mw. Of the total, 1,980 Mw has been commissioned and 7,260 Mw is under implementation.

"The company is in advanced stages of implementing 4,620 Mw coal-based power project at Mundra in Gujarat, 3,300 Mw coal- based power project at Tiroda in Maharashtra and 1,320 Mw coal-based power project at Kawai in Rajasthan," the report noted.

In 2010-11, Adani Power posted a total income of Rs 2,125.07 crore, including Rs 2,106.43 crore from sale of power. The entity raked in a profit after tax of Rs 523.75 crore last fiscal.

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RAWATBHATA (Rajasthan): India`s nuclear power aspirations just got a boost thanks to a lucky find. The Department of Atomic Energy (DAE) has discovered that the upcoming uranium mine in Andhra Pradesh's Tumalapalli has close to 49,000 tonnes of uranium — three times the original estimate of the area`s deposits. In fact, there are indications that the total quantity could go up to 1.5 lakh tonnes, which would make it among the largest uranium mines in the world.

The quantity is sufficient for supporting a nuclear power plant of 8,000 MW capacity for 40 years. Production will start in six months. Srikumar Banerjee, secretray of DAE and chairman of the Atomic Energy Regulatory Board, announced the discovery during the foundation stone-laying ceremony of the seventh and eighth units of the Rawatbhata atomic power project.

"It`s confirmed that the mine has 49,000 tonnes of ore, and there are indications that the total quantity could be three times of that amount. If that be the case, it will become the largest uranium mine in the world. The plant is ready, and will begin production by the end of this year," Banerjee said.

Now, India has two functioning uranium mines — both in Jharkhand. The total reserves are estimated to be in the range of 1,70,000 tonnes. The discovery of the Tumalapalli deposit has at one stroke boosted the availability of uranium, lowering the country`s dependence on foreign supplies.

India has been procuring uranium on various terms from countries like France and Kazakhstan but does not yet have a long-term supply contract.

India continues to fancy nuclear energy as a possible solution for its energy needs. Unlike some other countries which have been forced to temper their enthusiasm for nuclear energy post-Fukushima, the UPA government is persisting with its push for what is considered to be the cleanest source of energy.

The fact that Tumalapalli may have uranium reserves has been known for a while, but it took four years for the estimate to come to the present level from 15,000 tonnes in 2007. A 220-MW plant requires 45 tonnes of uranium per year, a 540-MW plant needs 80 tonnes and a 700-MW plant requires 100 tonnes per year.

Banerjee said that the fact that the usual acidic method of leaching would not have worked in Tumalapalli took some time for a full exploration of the reserves. "We developed the method of acidic leaching in the Jadugoda mines in Jharkhand. Subsequent exploration showed that reserves are spread across a 35-km radius," he said.

The countdown has started for the seventh and eighth units of the Rawatbhata power project, which is all set to have two indigenously built 700 MW capacity plants — the biggest in the country. The plants, being built at a cost of Rs 12,000 crore, are likely to be ready by 2016. As per the revised policy, 50% of the energy output will be for consumption in Rajasthan, and the rest will be given to the Northern Grid.

S K Jain, CMD of the Nuclear Power Corporation India Limited, announced plans of constructing 14 plants of 700 MW capacity each over the next few years.

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The Tumalappalli mine in Andhra Pradesh state has confirmed 49,000 tonnes of ore and there are indications that it could hold reserves totalling three times its current size, The Times of India quoted Srikumar Banerjee as saying.

"If that be the case, it will become the largest uranium mine in the world," Banerjee, secretary at the Department of Atomic Energy, said, adding production will start in six months.

The mine's proven reserve is enough to support a 8,000 mega watts nuclear power plant for 40 years, the report added.

India plans to expand its nuclear power generation capacity from 4.7 giga watts (GW) now to 7.3 GW by the end of March 2012 and 20 GW by 2020.

To make this possible, the country has signed a landmark nuclear power deal with the United States and opened up its estimated $150 billion nuclear power market to private reactor builders such as GE and Areva CEPFi.PA.

India, which has a total installed power generation capacity of 164 gigawatts (GW), aims to raise it to 187 GW by the end of March 2012. Even this target is modest, given a 12 percent peak-hour power shortfall that crimps the country's near 9 percent economic growth. (Compiled by Ratnajyoti Dutta; Editing by Krittivas Mukherjee)

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DPSC, a power generation and distribution company along with IPCL, an unlisted Srei Group controlled venture-fund company, today announced an investment of Rs 26,450 crore in adding new power generation capacity over the next few years.

DPSC, which came under IPCL fold after divestment by Andrew Yule in 2009-10, will add 450 Mw of thermal power in its books at Raghunathpur in West Bengal. Another 3,750 Mw of thermal power would be added by IPCL.

DPSC Chairman Hemant Kanoria said the DPSC-IPCL combine had embarked on major expansion after the takeover and new 1,320-Mw units would be set up in Bihar and Madhya Pradesh, besides a 450-Mw unit in Haldia.
DPSC has 77.4 Mw of generation capacity at present and has a distribution licence of 618 sq km in the Asansol-Raniganj belt.

Kanoria said the company will participate in bidding for a few distribution licenses which were expected shortly.

DPSC will also invest another Rs 1,450 crore in creating and improving the existing distribution infrastructure.

Asked about funding of the projects, Kanoria said the process for financial closure process has begun for the Haldia project under IPCL and others will follow.

DPSC would require another 100 acre at Raghunathpur to set up the project.

Dilution of stake either by way of private placement or follow-on offer of DPSC is on cards as promoters holding is close to 92% and requires dilution according to Sebi norms.

Kanoria said there was about 20 to 22 months to comply with the listing guidelines.

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Amid debate over efficiency of power equipment supplied by BHEL and Chinese firms, brokerages have given thumbs up to the Indian PSU, saying its offerings have an "edge" over rivals from China.

State-owned BHEL synchronised 9,442 MW of generating equipment last fiscal. This accounted for about 57% and 89% of total thermal and hydro capacity additions in the country.

However, of late, many private players such as Reliance Power have ordered Chinese equipment for their projects including Ultra Mega Power Projects (UMPPs).
Meanwhile, against the backdrop of comparisons between equipment supplied by BHEL and the Chinese players, a working group has been set up by the Power Ministry to analyse the performance of the sets from the two entities.

The debate over BHEL and Chinese sets comes at a time when the Indian power sector is projected to see an ambitious capacity addition of over 80,000 MW in the 12th five-year plan (2012-17).

Various reports by different entities, however, have supported BHEL, say experts.

"BHEL retains the edge over the Chinese of a five% better heat rate, PLF (Plant Load Factor) and lower auxiliary consumption. This is reflected in the trust that private IPPs (Independent Power Producers) have reposed in BHEL," global group Bank of America Merrill Lynch said in a recent report.

PLF is an indicator of generation efficiency.

Meanwhile, industry sources requesting anonymity said that a major concern with Chinese sets is the lack of asset maintenance by Original Equipment Manufacturers (OEMs), even during the initial years of operation.

Further, they added, that there are also apprehensions about after sales support and related costs as compared to domestic entities like BHEL.

A recent report from JM Financial said that life-cycle cost of BHEL equipment is lower as compared to that of Chinese sets, mainly due to better PLF and lesser operational costs.

In 2007, brokerage firm CLSA had said that BHEL would retain higher share in Indian power equipment market despite stiff competition from Chinese entities.

Industry estimates indicate that BHEL's offerings -- boiler, turbine, and generator -- make up for about 45% of the requirements of a power plant.

Delays in many power projects have been attributed to factors such as non-availability of Balance of Plant (BoP) equipment and shortage of skilled manpower

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JSW Energy on Thursday said the plan to expand its Ratnagiri power plant by 3,200 Mw would be postponed till issues regarding imported coal were sorted. However, the plan for 1,200 Mw of capacity would be commissioned on schedule. Two units of this project are physically operational, the third has begun commercial operation and the fourth unit will be operational soon.

Sajjan Jindal, chairman, said they were awaiting clarity on the government stand regarding imported coal-based projects before going for more of such capacity. These projects are facing trouble since Indonesia decided to index its coal exports to global prices and Australia is coming up with a tax on mining. The company is already importing all its coal requirements on a spot basis and is facing the heat.

JSW Energy also reported its quarterly results on Thursday. It saw a 41 per cent fall in net profit to Rs 190 crore from Rs 327 crore in the same quarter last year, as its fuel cost went up a whopping 77 per cent. This increase is due to a rise in global prices of coal. It has, however, a 27 per cent growth in revenue to Rs 1,119 crore, as compared to Rs 879 crore in the same quarter last year.
"Even long-term contracts of coal do not have fixed prices," said Jindal. "The problems in the power sector will continue for the next one year."

While imported coal-based projects are under review, the company is continuing the development of three domestic coal-based power projects -- a 1,320 Mw Chhattisgarh project, a 1,600 Mw project in West Bengal and 1,620 Mw in Jharkhand.

Merchant sales went up during the quarter to 72 per cent of consolidated net generation as against 69 per cent in the pervious quarter. "The margins on merchant sales are expected to be under pressure, as the deferment of power procurement is expected to keep the merchant tariff uncertain. However, imported coal prices are now showing some signs of decline," the company said in a press release.

The results did not go down well with the stock market. The stock plunged 6.6 per cent in trade on Thursday, to close at Rs 71 per share.

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The Act governing the sector allows only PSUs to undertake mining besides permitting private firms to extract coal for captive use.

The bill to amend the Act to allow private participation has been pending in Parliament for the last 10 years for want of political consensus amid opposition by trade unions. Earlier, Coal Minister Jaiswal had said the government, as part of the energy sector reforms, is trying to evolve a consensus on commercial coal mining to promote development of the sector.

After nationalisation of the coal mines in 1973, the mining in the sector is done exclusively by the public sector companies, with Coal India accounting for over 82 per cent of the production.

The private sector is allowed coal mining for meeting their captive requirements in sectors like power, steel and cement etc.

The need to liberalise the sector was also felt in the wake of widening demand-supply gap of the dry-fuel.

According to government estimates, India faces a supply shortage of142 million tonnes of coal, with the requirement of 696 million tonnes in the current financial year.

In the next 20 years, import dependence can go up to 55 per cent of the demand, as per Coal Ministry estimates.

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Euromast said:

private parties are allowed to operate power plants, even private parties are setting up power equipment manufacturing plants. Still power plants operators have to import coal because govt is sole provider of coal and power distribution. both these factors are screwing the supply chain

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NPCIL to borrow $5.7 bn for world’s largest nuclear plant​

New Delhi: Nuclear Power Corporation (NPCIL), India’s lone nuclear power generation utility, is going ahead with its aggressive capacity addition plans despite the renewed concern over safety of nuclear power generation after the Fukushima disaster.
NPCIL is in talks with a consortium of 12 European banks, including BNP Paribas SA, HSBC Holdings Plc and Societe Generale, to raise as much as 4 billion euros ($5.7 billion) to finance its proposed 10,000 mw nuclear power plant at Jaitapur in Maharashtra. Reactors for this plant — the largest in the world — will be supplied by Areva, a French nuclear power equipment manufacturer, according to a senior NPCIL official.

The loan will be guaranteed by French trade credit insurance company Coface SA. The total cost of the project, with a debt-equity ratio of 70:30, is about $18 billion. The PSU will have to arrange for the rest of the loan component from domestic lenders such as Power Finance Corporation.
“The challenge of large-scale nuclear power capacity addition in a rapid manner has, indeed, provided an opportunity for further enhancing country’s capability in adopting and implementing diverse technologies,” says NPCIL chairman and managing director SK Jain.

The state-owned generator plans to put up six reactors each with 1,650 mw capacity at Jaitapur. The ministry of environment and forests (MoEF) recently issued environmental clearance for the project after dithering over the issue initially.

Some environmentalists had raised concern about the possible environmental impact of putting up such a large nuclear power plant at a site that according to them, falls in a seismically sensitive zone. Besides, concerns were also raised about the safety of the European Pressurised Reactors to be supplied by Areva on the ground that it is a technology that is yet to be tested.

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Private equity firm Blackstone today said it will be investing Rs 500 crore ($111 million) in an independent power producing venture Visa Power Ltd.

"The Blackstone Group will be investing Rs 500 crore in Visa Power Ltd, whose core asset is a 1,200 MW captive-mine based, coal fired power plant in Chhattisgarh which is in an advanced stage of development," a joint statement from both the firms said.

Visa Power is part of Visa Group, which is a minerals, metals and energy conglomerate with business interests in steel, power, mining, international trading, shipping and logistics.

"The Power sector in India is going through an exciting phase of growth which is critical to sustain the country's high levels of economic and industrial growth, and unlock India's economic potential. We are glad that Blackstone shares our vision," Visa group founder and chairman and Visa Power chairman Vishambhar Saran said in the statement.

Visa Power has a pipeline of a further 6,600 MW under development, including a 1,320 MW coal-based super critical power plant in Orissa, which is also in an advanced stage of development. The firm also plans to develop power projects in Madhya Pradesh, Jharkhand and Gujarat, the statement said.

"We believe that Visa Power's core Chhattisgarh plant with its captive mine will have a very competitive cost of generation, and will be among the better positioned independent power producers in the country", Blackstone Advisors India Chairman and Managing Director Akhil Gupta said in the statement.

"In addition, we have been impressed with the track record of Visa's promoters and its management team in developing and executing greenfield projects," he said.

"Investing in the development of infrastructure in India has long been a theme of ours at Blackstone. India needs an investment of $200 billion in the power sector, of which $50 billion is required in equity, if the country is to continue its rapid economic growth," he added.

The Chhattisgarh plant is scheduled to be commissioned in 2013-14, it said

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NEW DELHI: State-run NTPC on Tuesday said it could start work at its proposed 1,320 MW thermal project in Bangladesh in the next six months.

"We might start work on the project in Khulna (Bangladesh) in the next 6 months," CMD NTPC Arup Roy Chodhury told reporters here.

The project entails an investment of about Rs 8,OOO crore.

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GUWAHATI: The power corporation feels that the state has the option of increasing its share of power from the 200 MW Lower Subansiri hydro-electric project.

"At present, Assam's share of free and allocated power from the Lower Subansiri project is about 250 MW. In fact, the state can get more power in future from the project. Negotiation between the Assam government and the Union power ministry is going on over increasing the quantum of power share for the state. We hope that it will yield some positive results," a senior NHPC official said here on Tuesday.

Of the total 2000 MW of power, about 1000 MW has so far been allocated for seven northeastern states. Arunachal Pradesh, where the project is being constructed, will get 12 per cent from the installed capacity. At present, Assam's share is 1.25 per cent free power and 208 MW of paid power.

The Assam government has been seeking a hike in the quota of free power to six per cent. Recently, state power minister Pradyut Bordoloi said Assam has been demanding an increase in the quantum of power share from the Lower Subansiri project.

With 50 per cent of the Lower Subansiri project, the biggest so far in southeast Asia, already completed, NHPC officials said the Assam government has pledged facilitating transport of turbines. The machineries are currently stranded in Dhubri because of stiff opposition from anti-dam activists.

"Three turbines have already reached the construction site, but two others are still in Dhubri. The state government has assured us of facilitating safe transport of the two turbines. All the major challenges facing the project such as landslides have been taken care of. We hope to complete the project by 2014," the NHPC official said.

The Lower Subansiri prject has been facing stiff opposition from anti-dam groups such as the Krishak Mukti Sangram Samiti (KMSS) on the ground that it might cause large-scale downstream impact in the form of floods and siltation. Assam is situated in the downstream area of the project.

Despite opposition, work on the project is on and over Rs 5000 crore has already been invested. The total project cost has been estimated at Rs 10,500 crore.

Allaying apprehension of any adverse downstream impact, the official said flood cushion measures would effectively take care of the problem. "During monsoon, we will lower the reservoir level to mitigate the impact of floods," the official said.

A steering committee comprising experts from the Central Water Commission, the Brahmaputra Board, IIT Roorkee, the state water resources department and NHPC has been entrusted with the task to carry out a study on the project's downstream impact.

The panel, constituted by NHPC following a request from the Assam government, will also suggest measures on mitigating downstream impact. NHPC officials said the committee has already covered 130 km up to the confluence of the Subansiri and the Brahmaputra as part of its downstream impact study.

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NEW DELHI: Twenty-two domestic and foreign companies have bid for setting up a Rs 1,025-crore power transmission project connecting Tamil Nadu and Karnataka even as the central government tightened eligibility rules.

While Reliance Power, L&T, Lanco Infratech, Sterlite Energy, Adani Power, GMR Energy and Torrent Power are among the Indian bidders, the foreign companies included Spain's Elecnor, Isolux, Instalaciones Inabensa and Cobra Instalaciones.

Power Finance Corp is coordinating the bidding for the build-own-operate project, which involves laying two high capacity 250-km transmission lines to connect Nagapattinam with Madhugiri in Karnataka.

The government had revised the bidding norms for transmission projects three months ago. Now, a bidder should have experience in setting up any infrastructure project of the same cost as that of the transmission project. Earlier this requirement was one-fifth of the size of the transmission project.

The government has identified three more high-capacity transmission systems to be awarded to private companies. PFC and Rural Electrification Corp would conduct bidding for these projects. The two companies have so far awarded six such projects worth 10,860 crore for strengthening interconnection between the north and western regions.

Vedanta Group's Sterlite Transmission Projects has bagged contracts to build three large power transmission links. Reliance Power has bagged two such projects while a consortium of Simplex Infrastructure, Patel Engineering and BS Transcomm has been awarded the sixth contract. Power transmission is a monopoly of Power Grid Corp, which owns and operates about 45% of inter-state transmission system.

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Anil Ambani-led Reliance Power has started the process of arranging funds for its 4,000 MW ultra mega power project at Tilaiya in Jharkhand.

Reliance Power has received in-principle approval from the RBI for raising external commercial borrowings (ECB) of $2 billion and the financial closure process for the project has been initiated and it is expected that it would be financed at a debt to equity ratio of 75:25.

The power and coal mine put together are estimated to cost around Rs 24,000 crore ($5 billion).
Asked whether there was any delay in procuring land at the project site, company officials said, "majority of land required for the construction of the power plant has already been acquired. The environment clearance for the power plant has also been obtained."

Water required for the power plant has been allocated by the government from the Tilaiya reservoir which is located at a distance of about 4 kms from the power plant.

As per the Power Purchase Agreement (PPA), the first unit is scheduled to be commissioned in May, 2015 and the entire project by May, 2017, they added.

Tilaiya Ultra Mega Power Project (UMPP) is a pit-head power project and has been allocated two captive coal mine blocks, Kerandari B and C, having reserves of almost 1.3 billion tonne.

According to the company, plans for development of these mines have been prepared and are under approval by the government. The mine plan envisages production of almost 40 million tonne of coal per annum.

The power generated from this project will be supplied to 18 procurers from 10 states of northern and eastern India at a levelised tariff of Rs 1.77/kWh (Kilo Watt Hour).

Tilaiya UMPP is 3,960 MW (6 super-critical units of 660 MW each) power project at Hazaribagh district, Jharkhand. It is the third UMPP in Reliance Power's portfolio. The project is being developed by Jharkhand Integrated Power Limited which is a wholly owned subsidiary of the company. The power project is expected to start generating power from the year 2015.

The project was awarded for development to the company through a competitive bidding process and transferred to the company in August, 2009.

Given the scale of the project and the clearances for land, environment, water, forest etc required to be undertaken by the government, some of these approvals are being obtained after the project transfer, the officials explained.

Reliance Power is also developing two more such projects at Sasan (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh).

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NEW DELHI: Tata Power on Thursday said a cargo ship owned by its Singapore-based subsidiary has delivered coal for the 4,000 MW power project at Mundra in Gujarat.

'Trust Integrity', owned by Singapore-based Trust Energy Resources Pte Ltd, delivered the coal from Indonesian mines to Mundra project.

"This is a significant moment for us and is aligned to our strategy of being an integrated power player. With this objective in mind, Trust Energy was setup to securitize coal supply and shipping of coal for our thermal projects," Tata Power Managing Director Anil Sardana said in a statement.

Trust Energy was set up in 2007 to help integrate coal supply chain to support growth plans of Tata Power. The entity has a portfolio of a fleet of five Cape vessels, in its first phase.

The Mundra ultra mega power project is expected to come up later this year.

"The arrival of Trust Integrity at Mundra reinforces the company's fuel supply and logistics management integration, planned for the Mundra UMPP project," the statement noted.

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Areva T&D India’s transmission business (a part of Alstom Grid) on Monday announced that it had entered into a memorandum of understanding with Power Grid Corporation of India (PGCIL) to provide ultra high voltage technology for the latre’s upcoming 1,200 KV ultra high voltage AC (UHVAC) national test station at Bina in Madhya Pradesh.

PGCIL is in the process of establishing a 1,200 KV UHVAC transmission system at Bina. This development will facilitate field testing of equipment before deploying the technology for commercial purposes.

As per the MoU, Areva T&D India will provide 1,200 KV capacitor voltage transformer, dis-connectors and digital current transformers. All these high end products have been developed, manufactured and tested at Areva T&D India’s world class factories at Hosur and Padappai in Chennai, according to an official statement issued by Areva T&D Transmission.

Commenting on the development, Rathin Basu, managing director, Areva T&D India said: “We are delighted to partner with power grid in setting up India's first ever 1,200 KV national test sub-station. This is an important milestone in developing indigenous technology for a 1,200 KV transmission system for the national grid. This further reinforces Areva T&D India’s strength in providing highly sophisticated localised offerings in the ultra high-end technology segment,” he remarked.

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BL reported that Power Grid Corporation of India Ltd expects to capitalize projects worth around INR 12,000 crore per year over the next few years.

The report quoted Mr SK Chaturvedi CMD of PGCIL as saying that “We see an order book of about INR 120,000 crore over the next five to seven years. A large part of this will be capitalized during the next five year plan (2012-2017). Each year, we capitalize about INR 10,000 crore to INR 12,000 crore and it takes about four years to get returns on the investments we make.”

The capitalization roadmap is expected to ensure that the company would grow at the rate of more than 22 to 23% a year.

Answering queries, Mr Chaturvedi said that “As the country takes up new nuclear plants, PGCIL will play a role in evacuation of power. As and when projects are finalized, we will also take up development of the transmission network.”

Mr Chaturvedi said that “PGCIL currently wheels about 52% of the country's power evacuation capacity and is (already) investing nearly INR 60,000 crore more in nine major transmission lines.” He added that “This capacity addition will further enhance the share of the power supply grid as not much is being added by the private sector.”

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