» Business » PowerGrid for fresh offers for Rs 7,000-cr project

PowerGrid for fresh offers for Rs 7,000-cr project

September 28, 2010 01:14 IST

State-run power transmission firm PowerGrid has called for fresh offers from shortlisted bidders BHEL-ABB and Siemens for its Rs 7,000-crore HVDC (high voltage direct current) sub-stations' project.

While the entire transmission project consisting of HVDC sub-stations and a 800 Kv transmission line from Biswanath Chariali in Assam to Agra in north India is worth about Rs 12,000 crore, the sub-station portion is estimated at Rs 7,000 crore.

"We have called for fresh bids from existing bidders BHEL-ABB and Siemens for sub-stations in our transmission line due to some technical reason," PowerGrid's chairman and managing director, S K Chaturvedi, confirmed to Business Standard. The company's Board recently gave its approval for fresh bids from the two bidders, a consortium of BHEL and Swiss ABB's India unit, and Siemens Ltd, the Indian unit of Germany's Siemens AG.

The transmission firm owns and operates around 72,000 circuit km of transmission lines and alone transmits 45 per cent of all power generated in the country.

With India planning to add 78,700 Mw generation capacity during the 11th Plan and another 100,000 Mw in the 12th Plan, huge investment in transmission will be required for evacuation of electricity. PowerGrid plans to make an investment of over Rs 85,000 crore in transmission projects over the 11th and 12th Plan period.

It is also expected to come up soon with a follow-on public offer (FPO) of 10 per cent equity shares, with a fresh issue of 10 per cent equity. It plans to raise about Rs 4,000 crore through the issue. The government had earlier divested five per cent stake in the company. After the FPO, the government's holding would come down from 86.36 per cent to 69.4 per cent.

Mansi Taneja in New Delhi
Source: source
Related News: PowerGrid, HVDC, FPO, Siemens Ltd, BHEL