Economic Times reported that in a major diversification plan, state run Power Grid Corporation is in discussions with three companies, including SAIL, for setting up an equal joint venture to manufacture transmission equipment.

Power Grid Corporation of India sets up electricity transmission network.

A senior Power Grid official told PTI that "We are in talks with SAIL, NALCO, RINL to form a joint venture for setting up a manufacturing unit that would build towers, insulators, conductors and other ancillary equipment for power transmission network.”

The spokesman added that "The company will seek government approval for the joint venture.”

According to the official, the overall investment in the joint venture would be around INR 300 crore and Power Grid is expected to select a partner for the joint venture from these three PSUs this year. He noted that "For the manufacturing plant, we will need good supply of raw materials and that will be taken care of, if the joint venture with one of these entities comes through.”

Steel Authority of India Ltd, National Aluminium Company and Rashtriya Ispat Nigam Ltd are major players in the steel and minerals sector.

The Power Grid official said the manufacturing facility would primarily cater to the company's needs as well as domestic demand. He added that "We would also look at exporting the equipment.”

At present, Power Grid sources transmission equipment from various private players.

Source - PTI

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