Date:18/01/2005 URL: http://www.thehindubusinessline.com/2005/01/18/stories/2005011802230400.htm

Back PowerGrid objects to transmission licence for Reliance Energy

Our Bureau

New Delhi , Jan. 17

POWER Grid Corporation of India Ltd (PGCIL) has objected to Reliance Energy's applications for setting up power transmission lines in the western region.

PGCIL has filed petitions with the Central Electricity Regulatory Commission (CERC) on this issue, the Chairman and Managing Director of PGCIL, Mr R.P. Singh, said here today.

Reliance Energy had earlier filed applications before the CERC seeking licences for setting up transmission lines and substations in the western region. According to the Electricity Act, CERC has to hear Power Grid's views on any transmission licence application that comes up before it. The CERC will hear the case on February 8.

"We have filed a petition with the CERC on this issue," Mr Singh said at an international conference on power transmission. According to Power Grid officials, the utility had earlier invited bids for joint venture partners to strengthen the transmission network in the western region and was willing to offer between 51 per cent and 74 per cent stake to private parties for setting up 20 transmission lines and 13 sub-stations.

In its appeal, Power Grid argued that it had the "required permissions" for carrying out transmission linkages in the western parts of the country.

Power Grid also said any move to grant permission to Reliance Energy for setting up transmission lines in the same corridors would only jeopardise the process of its selection of joint venture partners.