The Anil Ambani promoted Reliance Energy (REL), which has till now, focused on generation and dabbled with distribution is now set to open its account in the transmission sector. The company's transmission arm, Reliance Energy Transmission (RETL), is set to be awarded the first wholly owned private transmission project in the western region, for which it was the lowest bidder. This is the first competitive tariff-based bidding project in the transmission sector.
The Western Region System Strengthening Scheme (WRSS-II) project involves a total investment of Rs 2,000 crore. The project covers laying over 1,500 km of 400 kV D/C transmission lines in Maharashtra, Gujarat and Madhya Pradesh. RETL expects to commission the project by 2010. This is the first transmission project to be built on 100% private ownership on a Build-Own-Operate (BOO) basis after the guidelines for investment were notified last year. The project would benefit eight western region state transmission utilities and state electricity boards. PGCIL that invited global bids for the project awarded it to RETL.
After CERC's final clearance, RETL would sign a Letter of Intent (LoI) with PGCIL for the WRSS-II project. For the second Parbati Koldam transmission project, PGCIL has already taken the boards approval for floating a joint venture with RETL. The joint venture is likely to be called Parbati-Koldam Transmission Company, in which RETL will hold 74% equity, while the remaining will be held by PGCIL. The project is important as it is expected to end the drought of private sector transmission projects in the country.
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