Power Grid Corporation of India Ltd. presented on investment opportunities in India's transmission sector. Some key points: - India's power sector is growing rapidly but transmission needs to be expanded to integrate new generation capacity and regional grids into a national grid. An estimated $200 billion is needed for generation, transmission, and distribution investments. - Power Grid owns and operates over 48,000 circuit km of transmission lines and 82 substations. It aims to further develop the national grid and facilitate 100,000 MW of new capacity by 2012. - Significant investments are planned for transmission projects over the next 5 years through Power Grid and private sector participation, including through joint ventures between Power Grid and private developers.

1. 1
Power Grid Corporation of India Ltd.
Presentation
on
Investment Opportunities
in Transmission Sector
in India

2. Indian Power Sector – A Profile
Installed capacity – 1,12, 000 MW
(Thermal – 76% Hydro – 23% Nuclear –
1%)
Peak Demand – 86,000 MW
Transmission lines – More than 5 Million
Ckt. Kms
Regional Grids – 5
National Grid under various stages of
implementation
Growth Rate of energy – 9% per annum

3. About POWERGRID
One of the largest and best managed
transmission utility in the World, owning and
operating network of over 48,000 ckt. Kms. of
transmission lines at 765 kV, 400 kV & 132 kV
levels and 82 sub-stations with transformation
capacity of about 46,500 MVA.
One amongst six transmission utilities in the
World achieving 99% line availability,
consistently.
Wheels more than 200 billion units (worth Rs.
400 billion) per year - 40% of total generated
power in the country.

4. POWERGRID Growth profile
1992-93 2003-04 Growth(%)
Physical Performance
No. of Sub-stations 39 82 110
MVA capacity 13,200 46500 252
Circuit kms 23,000 48000 108
Inter-regional transfer 500 8500 1600
capacity (MW)
Financial Performance (Rs Crore)
Net profit 237 748 217
Turnover 634 2805 342
No.of employees 5,725 6,925 21

5. The Goal
By year 2012 :
Additional 100,000 MW capacity.
Integrating Regional Grids into National Grid
with 30,000 MW of Inter Regional transfer
capacity.
Access to 45 % remaining households.
Investment requirement of about US$ 200 Billion
for Generation, Transmission & Distribution.

6. Investment Outlay for Transmission
(Rs. in crore)
X Plan XI Plan Total
Central Sector 31,080 39,443 70,523
(Transmission +
Telecom)
Private Sector 9,710 11,185 20,895
Contribution
POWERGRID’s Outlay 21,370 28,258 49,628

7. POWERGRID’s Investment(Rs.in crore)
X Plan XI Plan Total
A. Transmission 19,130 27,999 47,129
Generation Linked Projects 7,436 4,020 11,456
Grid Strengthening Projects 3,192 3,192
Inter-regional/Inter Country Links 7,199 21,960 29,159
ULDC Projects 1,016 1,016
Investments in JV 204 204
Others 83 2,019 2,102
B.Telecom 2,240 260 2,500
Base Network 1,004 1,004
Equity in NLDO 1,236 260 1,496
Total(A+B) 21,370 28,258 49,628

8. POWERGRID’s Investment during X
Plan (Rs. in Crore)
02-03 03-04 04-05 05-06 06-07 X Plan
A.Transmission 3086 4186 4441 3820 3597 19,130
Generation Linked 799 1130 1598 1983 1926 7,436
Projects
Grid Strengthening 860 1307 845 180 0 3,192
Projects
Inter-regional/Inter 1052 1268 1729 1507 1643 7,199
Country Links
ULDC Projects 355 401 196 64 0 1,016
Investments in JV 0 17 73 86 28 204
Others 26 63 0 0 0 83
B. Telecom 266 930 427 318 299 2,240
Base Network 266 616 122 0 0 1,004
Equity in NLDO 0 314 305 318 299 1,236
Total (A+B) 3352 5116 4868 4138 3896 21,370

9. Private Sector Participation through
Joint Venture Route
A. Project Finalised under JV Route
The 1st Inter State Transmission Line Project
associated with Tala HEP being set up through
Joint Venture with Tata Power on BOOT basis –
July, 2003.
Transmission License granted to the JVC viz;
Powerlinks by CERC in Nov. 2003 & a new
chapter in Transmission starts.
……Contd.

10. Financial Closure achieved in May 2004 with
funding from IFC, ADB, IDFC and SBI (Rs.9800
million), estimated project cost Rs. 14000 million
and route length 1171 kms.
B. Projects under finalisation on JV Route
Part of the Transmission system associated with
Parvati-II (800 MW) & Koldam HEP (800 MW)
Estimated project cost-Rs. 4650 m (US $ 100 m)
Part of the Transmission system associated with
Maithon TPS (1000 MW)
Estimated project cost – Rs. 8100 m (US $ 160 m)
…..Contd.

11. C. New Projects on JV Route
Western Region System Strengthening Scheme
– II under two Projects – A & B.
Consists of 800 ckt. kms of 765 kV lines, 6300
ckt. kms of 400 kV lines, augmentation of 18
substations & setting up of 3 new substations.
Estimated cost Rs. 48300 m
Two part Solicitation process consisting of RfQ
& RfP stages.
….Contd.

12. Modus Operandi for WR SSS-II
Short-listed bidders to quote base price of the
project which shall be subject to price variation
as per specified formula with financial package.
D:E ratio to be 70:30
JVP to contribute equity in the range of 51-74 %
Lowest evaluated bidder to be selected as Joint
Venture Partner.
SHA & IA to be signed with POWERGRID.
TSA to be signed with SEBs/Beneficiaries.

13. Thank You