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PowerGrid to form JVs with ONGC, Essar, Torrent

March 22, 2006 16:53 IST

After Tatas and Reliance, state-run Power Grid Corp of India Ltd is set to form joint ventures with five more companies, including Oil and Natural Gas Corporation and Essar, for setting up transmission lines in the country entailing a total investment of Rs 5,000 crore (Rs 50 billion).

Power Grid will sign on Thursday MoUs with Oil and Natural Gas Corporation, Ruias-owned Essar Power, Torrent Power, Jaiprakash Group and Teesta Urja Ltd for executing transmission projects associated with their generating stations.

The total route length of these five projects would be around 5,000 circuit km and the estimated investment would be Rs 5,000 crore (Rs 50 billion). PGCIL will retain a minority 26 per cent stake and the developer would have the balance 74 per cent share in the joint venture.

While ONGC is setting up a 750 MW gas-fired power plant in Tripura, Essar and Torrent are building a 1,500 MW and a 1,000 MW gas-based projects in Gujarat. The joint venture with Jaiprakash group would be for its 1,000 MW Karcham Wangtoo project in Himachal Pradesh and with Teesta Urja Ltd for its power plant in Sikkim.

Power Grid already has a transmission arrangement with Tata Power Co for the 1,020 MW Tala hydroelectric project in Bhutan, which is likely to be operational from June this year.

PGCIL is also setting up a JV with Anil Ambani-owned Reliance Energy for constructing transmission lines associated with Koldam and Parbati hydel projects in Himachal Pradesh, although a formal agreement is yet to be signed.

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