POWERGRID Wins 2 Transmission Projects in Rajasthan Solar Energy Zone

POWERGRID to establish two transmission projects for the evacuation of power from the Solar Energy Zones (SEZ) in Rajasthan.

POWERGRID, Power Grid Corporation of India (PGCIL), has announced that it has been declared as the successful bidder under Tariff Based Competitive Bidding (TBCB) to establish two transmission projects on a build, own operate and maintain (BOOM) basis for the evacuation of power from the Solar Energy Zones (SEZ) in Rajasthan.

The first letter of intent dated February 16, 2021, has been issued to POWERGRID for the establishment of 765kV D/C transmission line and associated substation extension works in Rajasthan and Uttar Pradesh, under the ‘Transmission Systems Strengthening Scheme’ for the evacuation of power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase-II Part D.

The second letter of intent also dated February 16, 2021, has been issued to POWERGRID for the establishment of a new 400/220kV Substation, STATCOM, and substation extension works in Rajasthan and also 400kV DIC Transmission lines which traverse in Rajasthan and Haryana. The project has been won under the same scheme ‘Transmission Systems Strengthening Scheme’ for the evacuation of power from SEZs in Rajasthan (8.1 GW) under Phase-II Part-F.

In May 2020, PGCIL had issued a tender for the Statcom Package-I & II for the evacuation of 8.1 GW of power from solar energy zones in Rajasthan. The projects were part of the earlier transmission projects the firm had won under Phase-II Part B1 of the Rajasthan SEZ work.

In September 2020, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, in a path-breaking reform, had approved monetisation of assets of POWERGRID through Infrastructure Investment Trust (InvIT) model. This is the first time any PSU in Power Sector will undertake asset recycling by monetising its assets through the InvIT model and using the proceeds to fund the new and under-construction capital projects.

According to the notification issued by the CCEA, “asset recycling is a key strategy of the Government of India to release the capital invested in operational assets, and the proposed InvIT of POWERGRID would attract both domestic as well as global investors including Sovereign Wealth Funds. Sale of assets to InvITs is a way of accessing long term, relatively cheap finance required to fund infrastructure projects in the Transmission Sector.”