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Sterlite Transmission Projects has bagged the biggest transmission project to be awarded through the competitive bidding route in the country, having quoted the lowest tariff amid competition from eight other players. Others in the fray for the Rs 2,900-crore transmission scheme included Lanco, Larsen & Toubro, Gammon and Reliance Power.
The RfP (request for proposal) or the financial bids for the project entailing ‘system strengthening for the western region' were opened on January 28 and involves the setting up of key transmission links across three western States. The tariff-based bidding process for the project was conducted by PFC Consulting.
The contenders
Sterlite quoted the lowest annual levelised transmission charge of Rs 199.53 crore for 35 years in the bidding process. Ashoka ICOMM Consortium was L2 (second lowest bidder), with a quote of Rs 218.5 crore, while Lanco Infratech was L3 (with a Rs 244.89 crore quote) for the project, which spans the three States of Madhya Pradesh, Maharashtra and Gujarat and involves the construction of four major transmission lines.
These include the 330 km Jabalpur-Bhopal 765 kV (kilo Volt) link, the 250 km Dhule-Vadodara 765kV line and the 180 km Bhopal-Indore 765 kV link, besides the construction of two 765/400 kV substations at Bhopal and Dhule. Among the others vying for the project, L&T had submitted a quote of Rs 280.75 crore, Gammon quoted Rs 296 crore and Reliance Power had submitted a quote of Rs 318 crore.
New bidding system
The process of award of new transmission projects through the competitive bidding route is slated to pick up momentum in the light of a new regime coming into place from January 5 this year, which requires both generation and transmission projects to shift to a tariff-based competitive bidding regime.
Prior to the award of the latest project, Sterlite Transmission, a subsidiary of Vedanta Group firm Sterlite Technologies Ltd, had bagged a Rs 1,720-crore project entailing ‘system strengthening for western region and northern region' after having quoted the lowest annual levelised transmission charge of Rs 142.13 crore. The Letter of Intent to Sterlite Transmission was issued on January 19 this year. The transmission scheme entailing the ‘System Strengthening for Western Region and Northern Region' involves the establishment of a 765KV double circuit line from Dharamjaygarh to Jabalpur and a 765KV single circuit line from Jabalpur to Bina (250 km).
The company had, earlier last year, got the letter of intent for an ‘East-North interconnection' transmission package costing about Rs 800 crore under a similar tariff-based bidding process conducted by PFC.
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