REL to get Power Grid contract
November 21, 2006 Asia Pulse Data Source
Corporate giant Reliance Energy has
outbid seven other companies, including Tata Power
and GMR, to emerge as the top contender for building
India's first fully independent private power transmission
lines at a cost of about Rs 18-20 billion.
The Anil Ambani Group firm was the lowest
bidder for the two tenders invited by state-run Power
Grid Corporation of India Ltd for constructing the
grid lines linked with Western Region Strengthening
Scheme in Gujarat and Maharashtra.
Tata Power, Larsen and Toubro, GMR group,
China Light and Power-Gammon India, Lanco-Deepak Cables,
and two Spain-based consortia, including Inabensa-Abengoa,
were the other companies in race for the two projects.
"Reliance Energy Transmission Ltd has
emerged as the lowest bidder in each of the Packages
B and C, for which separate price bids were invited
(by PGCIL)," a statement by Central Electricity Regulatory
Commission said.
The two projects are part of PGCIL's
Rs 50 bn western grid scheme, which ran into dispute
last year when REL approached CERC for a licence to
set up the lines on its own.
While Package B is for building sub-stations
and grid lines in southern Maharashtra at a cost of
Rs 11-12 bn, the Package C entails setting up grid
lines in Gujarat at an investment of about Rs 5-6
bn.
When executed, these would be India's
first transmission lines built fully by private players.
PGCIL has so far formed joint ventures
to build some grid lines. In fact, the only joint
venture in transmission that is operational at present
is between PGCIL and Tata Power to evacuate power
from Tala hydroelectric project in Bhutan.
