PGCIL Gets Board Approval to Invest ₹22.20 Billion in Power Transmission Network
The panel approved the investment of ₹11.849 billion for evacuation infrastructure in Rajasthan Solar Zones
Power Grid Corporation of India Limited (PGCIL) noted that on May 21, 2021, its Board has approved an investment to the tune of ~₹22.20 billion (~$301.48 million) for commissioning various power transmission projects.
The decision to approve the outlay was taken at the meetings held by PGCIL’s Board of Directors and Committee of Directors on Investment on Projects, the state-owned power transmission company notified in a BSE filing.
The Board of Directors approved the investment for the transmission system strengthening program for evacuating power from solar energy zones in Rajasthan (8.1 GW) under Phase-II – Part-B1 at an estimated cost of ~₹11.849 billion (~$162.23 million).
The project is supposed to be commissioned in a phased manner, starting with Part A by December 2021, Part B by March 2022, Part C by June of next year, Part D by Aug 2022, and the last portion by Sept 2022.
In February 2021, PGCIL had bagged two power transmission projects in Rajasthan through tariff-based competitive bidding. These projects are built to evacuate 8.1 GW of power from solar energy zones in the state. The company had won both projects on a build, own, operate, and maintain basis. The power transmission company had also secured three other power transmission projects in Rajasthan through competitive bidding. These are built to evacuate another 8.1 GW of power from solar energy zones in the state.
The Board has also accepted the North Eastern Region Strengthening Program-XII at an estimated cost of ~₹5.746 billion (~$78.67 million) to be commissioned progressively by March 2023.
In December last year, the cabinet committee on economic affairs approved ₹67 billion (~$910 million) for the North Eastern Region Power System Improvement Project. The program is currently being implemented through PGCIL aiming to create a reliable power grid and improve the states’ connectivity to the upcoming load centers and extend the benefits of grid-connected power to all consumers in the region.
The Committee of Directors on Investment on Projects has approved an investment proposal for capital expenditure for procuring telecom equipment to set up an exclusive telecom network for the National Transmission Asset Management Center at an estimated price of ~₹1.173 billion (~$16.06 million), with a commissioning schedule of 12 months from the date of the award.
Additionally, the Committee also approved equity investment to pay off the state contribution of 5% project cost to Union Territories of Jammu and Kashmir and Ladakh and expenditure towards procurement of spares for 220 kV Srinagar-Leh transmission system at an estimated cost of ~$1.444 billion (~$19.77 million).
The project is scheduled to be progressively completed within 18 months from the date of investment approval.
The government has plans to set up 7.5 GW of solar projects in Leh and Kargil (Jammu & Kashmir) and intends to set up the transmission infrastructure ahead of the project development.
Srinwanti is a copy editor at Mercom India, where she writes and edits news stories across the clean energy spectrum. Prior to Mercom, she has worked in book publishing at Macmillan Publishing House and Integra and honed her editorial and writing skills in both online and print media such as Reuters, Times Group Books, The Times of India, and Pune Mirror, covering local to international stories. More articles from Srinwanti Das.