The Hindu Business Line : PowerGrid in talks with pvt cos for transmission biz

A SLEW of private sector players including Reliance Energy, Essar Power Ltd and Jaiprakash Associates Ltd could be in line to mark an entry into the power transmission business.

State-owned transmission major, Power Grid Corporation of India Ltd (PGCIL), is in talks with a handful of power generation companies, including Essar Power and Jaiprakash Associates, to offer majority stake in a number of new projects worth around Rs 1,500 crore.

PGCIL plans to offer 74 per cent equity to the private sector players in the transmission projects that would be set up to evacuate power from their respective generation stations. It would retain a minority 26 per cent stake in these joint ventures, company officials said.

The company was also in talks with Reliance Energy to set up another joint venture, where it would hold 24 per cent stake. The joint venture would lift power from NTPC Ltd's Koldam and the National Hydroelectric Power Corporation's Parbati-II power project, a company official said.

So far, PGCIL has picked up equity in one such joint venture with Tata Power Company to evacuate power from Bhutan. It holds a minority 26 per cent stake in the joint venture with Tatas.

Essar Power is building a 500-MW gas-based power station in Gujarat. The project would supply power to Gujarat and neighbouring States. Jaiprakash Associates is setting up 1,000-MW Karcham Hydro power project in Himachal Pradesh.

PGCIL has also initiated talks with Infrastructure Leasing & Financial Services, which is setting up a 750-MW gas-based project in partnership with Oil and Natural Gas Corporation and the Government of Tripura in the State.

"The move towards forming such joint ventures with private power generating firms was initiated following proposals received from these private firms. We are in talks with 4-5 players," a PGCIL official said.

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