September 07, 2008

REL two transmission projects cleared

It is reported that Indian government has cleared Reliance Energy's INR 3,500 crore two transmission line projects, for which Power Grid Corporation of India Limited had selected private partner for the projects through the international competitive bidding process in 2006. The agreement is likely to be signed by end September 2007 or early October 2007. The projects are scheduled to be commissioned by March 2010.
1. Western region system strengthening II
2. Parbati Koldam hydro projects in Himachal Pradesh

The transmission lines of Parbati and Koldam projects had been delayed for almost 2 years now, while the 4,000 MW WRSS II has been delayed for 10 months. For Parbati Koldam, PGCIL had invited bids in November 2004 and final letter of selection was issued in December 2005. REL and PGCIL had floated a 74:26 JV for the INR 1,500 crore projects. Reliance Energy Transmission, a subsidiary of REL, had bagged the INR 2,000 crore WRSS II project.

These projects were delayed due to issues raised by the public private partnership appraisal committee. Now issues regarding buyout and transfer of the projects are resolved as REL accepted public private partnership appraisal committee's suggestions and has agreed to abide by its suggestions.