Date:06/11/2007 URL: http://www.thehindu.com/2007/11/06/stories/2007110657061700.htm

Business

Power Grid-REL venture to take off

Special Correspondent

To set up grid lines for two hydro projects in H.P.

Proposal to be referred to CERC
Reliance Energy to have majority stake

NEW DELHI: Power Grid Corporation of India Ltd. (PGCIL) has given the green signal for the long-pending Rs. 800 crore joint venture with Anil Ambani-owned Reliance Energy Ltd. (REL) to set up the grid lines associated with the 1,600 MW Parbati hydro power project and 800 MW Koldam hydro project in Himachal Pradesh.

The directors have given the final clearance to the proposal last week. The issue will now be referred to the Central Electricity Regulatory Commission (CERC) for final clearance, according to PGCIL Chairman and Managing Director, R. P. Singh.

While the 800 MW Koldam project is being built by National Thermal Power Corporation Ltd., the 1,600 MW Parbati valley project is being constructed by National Hydroelectric Power Corporation. Mr. Singh said that PGCIL had already cleared the western region system strengthening project in Maharashtra and Gujarat. This project would also be constructed by a joint venture, comprising PGCIL and REL, at a projected cost of Rs. 2,700 crore.

Both the projects were held up for the past two-three years for various reasons such as the government’s norms for public-private partnership ventures in the infrastructure sector. REL would hold 74 per cent stake in Parbati-Koldam power transmission joint venture, while PGCIL would hold the balance.

PGCIL, the nodal agency for both the Western Region and Parbati-Koldam schemes, had selected REL through international competitive bidding.