Power transmission: panel for awarding projects through tariff-based bidding.

The Empowered Committee on Transmission of the Central Electricity Authority has suggested that transmission projects worth Rs. 9,468 crore should be awarded through tariff-based competitive bidding.

At present, projects are awarded through tariff-based bidding as well as directly to Power Grid Corporation.

At a meeting held last week, the Committee discussed eight such schemes which had been suggested by the regional power system planning committees.

The largest amongst the eight is the 765 kV System Strengthening Scheme in Eastern Region. While the broad outline for system strengthening was approved along with the Odisha Ultra Mega Power Project, the delay in the UMPP has led to changes in the scope of works.

The Empowered Committee has decided that a strong East-West connection is required in the eastern region. “The part of earlier proposed scheme – Ranchi-Medinipur-Jeerat 765 kV D/C line – may be taken up for implementation,” the minutes of the Committee meeting stated.

Earlier this month, the Association of Power Producers had written to the Power Ministry seeking more transmission projects to be brought under tariff based competitive bidding. “So far only 22 projects worth roughly ₹25,000 crore have been awarded on competitive bidding route over the last five years. The number of bidders has reduced from 12 in 2011 to just 4 in 2015. Most international bidders have stayed away from bidding citing that the pipeline is too small and concerns about the dominant incumbent,” the letter stated.

The association recommended that all transmission projects should be awarded by way of tariff based competitive bidding.

HBL