India's PowerGrid Plans 65,000 Kilometers of Transmission Lines in Expansion Drive

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--State-controlled Power Grid Corporation of India Limited (PGCIL) is expanding in the power sector, both in the scope of its projects and internationally. In its traditional transmission grid development sector, the $12.2 billion expansion plans will end when the country's 11th Five-Year Plan period ends in March 2012, with $44 billion to be invested in the current fiscal year.

During the period of the 12th Five-Year Plan (2012-17), PGCIL plans to install about 65,000 circuit kilometers (ckm), which will be more than double the amount installed during the 11th Plan. The target for the 11th Plan was the installation of 37,000 ckm, but the final figure may only be between 28,000 and 30,000 ckm, due to delays in the commissioning of some projects.

Currently, the company has 87,111 ckm of transmission lines installed across the country, carrying the majority of India's installed generating capacity of 180,000 MW. PGCIL has awarded 95 contracts representing 4,224 ckm in this fiscal year and will be investing $3.3 billion in projects in the next five months.

PGCIL is considering entering into joint ventures with various Indian state governments for intrastate transmission networks and already has used the joint venture model on a public-private partnership basis, with eight companies for intrastate connectivity. As power generation and distribution capacity in the states increases, the company anticipates the need for an efficient power transmission network to evacuate the power and connect it to the grid.

PGCIL is also planning to go international and has proposed a joint venture in Bangladesh and Sri Lanka for the setting up of transmission lines in those countries to transmit the power from projects planned by India's largest power generator, the state-controlled NTPC. The $335 million investment for the projects will be on a 50:50 or 74:26 basis, depending on the terms struck with the Bangladesh Power Development Board (BPDB) and Ceylon Electricity Board (CEB).

The company also is providing consultancy services and turnkey execution of transmission projects in Afghanistan, Dubai, Bhutan and Bangladesh.

The company also is seeking government permission to set up captive power plants based on renewable energy sources in order to move to carbon-neutral generation. This move would be based on wind and solar power and would be given an initial investment of up to $450 million.

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