Tata Power, REL, GMR and L&T in fray for power grid project

Mumbai: Tata Power, Reliance Energy, GMR and L&T are among the nine corporate giants vying to build the country's first fully independent private power transmission lines. The projects that cover Gujarat and Maharashtra are estimated to cost a total of Rs1,700 crore.

While one project involves setting up of sub-stations and grid lines in southern Maharashtra at a cost of Rs1,100 to 1,200 crore, the other involves setting up transmission lines in Gujarat at an investment of about Rs500-600 crore.

Power Grid Corporation of India Ltd (PGCIL), the state-run transmission monopoly, had invited bids for the independent grid lines for strengthening the western region grid last year. PGCIL will select the developer by November and the projects are due for completion by 2009.

According to R P Singh, chairman and managing director of PGCIL, "Tata Power, Reliance Energy, Larsen & Toubro, GMR group, China Light & Power and Gammon India, Lanco and Deepak Cables, and three Spanish companies, including Isolex Wat and Abengoa, have submitted bids for the projects."

PGCIL has a joint venture with Tata Power to evacuate power from Tala hydroelectric project in Bhutan and once the current bids are accepted and projects executed, these would be the first privately-built transmission lines in the country.