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Monday, May 25, 2009

PGCIL Postpones Northeast Power Transmission Project


Published:24-May-2009

Power Grid Corporation of India Limited (PGCIL) has not yet granted key contracts for a major power transmission project to link the Northeast part of India with the remaining parts of the country. The chicken-neck project entails establishment of a transmission corridor with an INR110 billion investment. With an overall investment of INR330 billion, India proposes to establish three additional transmission corridors to connect projects located in the Northeast and the remaining parts of India.


While orders for establishing the project’s transmission links have been granted, orders for the three terminals that transform power to direct current (DC) and from alternating current and vice-versa are not yet established. The terminal’s order value is estimated at INR45 billion.

A senior PGCIL executive said “The tenders for the (transmission) lines have been issued while the terminal tender has been delayed. The companies which have the technology for this terminal are ABB, Areva and Siemens.”

The tendered high-voltage DC lines will have a capacity to resist fluctuations of surge and 800 kV drop in power transmission, nearly two times that of existing capacities. This 2,000 km line will also decrease transmission losses.

Another PGCIL executive said “We plan to set up four corridors of 6,000MW each. The terminal tender is expected in June.”

The overall hydropower production potential of the North-East and Bhutan is nearly 58,000 megawatts (MW). The new system’s transmission capacity is estimated at nearly 46,000 MW, as demand in the region is likely to increase to 12,000 MW.

Kuljit Singh, a partner at accounting firm Ernst and Young, stated “The link is very important as a lot of capacity is proposed in the North-East. A large amount of projects in the private sector are also getting delayed. So even if a part of the link comes up, which may be sufficient to cater to the public sector capacity, it will be okay.”

The transmission project is expected to reach completion in four years times, once all contracts are awarded.

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