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Tuesday, Apr 09, 2002

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PowerGrid plans joint venture with employees

Our Bureau

NEW DELHI, April 8

POWER Grid Corporation is considering a joint venture with its employees to set up projects in the future that would enhance its transmission capability, its Chairman and Managing Director, Mr R.P. Singh, said on Monday.

As per a blueprint that is being developed and discussed with the Power Ministry, PowerGrid employees could take 51 per cent equity of specific transmission projects while PowerGrid wouldl take the rest.

``We thought of this plan as private sector participation is not coming in the transmission sector for joint ventures. Also, we thought of setting a trend by empowering the employees,'' Mr Singh told a press conference here.

The employees would have to first form a society in order to form a joint venture with PowerGrid for projects.

They could contribute about Rs 50,000-1 lakh per person that would go toward raising the equity of such a joint venture company.

Though the joint venture company will be totally independent of PowerGrid, it will not work as a parallel network, Mr V.K. Garg, Director (Finance), said.

``This asset will be leased to PowerGrid and that would help the employees get a better return on capital. Also, it is another way in which we can induct more people into the managerial cadre,'' Mr Garg said.

Should this attempt get approved and then turn into a success, PowerGrid would consider attracting similar investment from employees of other public sector companies and Government employees.

``We are clear that transmission should be a State monopoly. That is why instead of talking of disinvestment of PowerGrid, we are thinking of a different form of participation,'' Mr Singh said.

``The whole process is in a blueprint stage. We have informed the Ministry and in the next three months or so, we might be in a position to give an informal proposal to the Government,'' Mr Singh said.

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