REL to get Power Grid contract

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.