Panel restricts pvt role in power transmission

NEW DELHI, Aug 3: Transmission services projects for the evacuation of power from the generating stations of Independent Power Producers (I...

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NEW DELHI, Aug 3: Transmission services projects for the evacuation of power from the generating stations of Independent Power Producers (IPPs) should be thrown open to the private sector, the Sankaraguruswamy committee has recommended.

The committee report on `facilitating private investment in transmission projects’, currently under examination by the power ministry, has, however, restricted the role of the private sector in all other transmission projects.

The report of the committee clearly states that the Power Grid Corporation of India and the State Electricity Boards will remain monopoly entities in the transmission sector. The entry of the private sector in all transmission projects other than that of evacuation of power from IPP generating stations and critical link systems will be solely decided by Power Grid and the SEBs. In addition to these recommendations, the committee has suggested a three-tier model for facilitating technical and investment approvals of the transmission projects.

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As per the model, all transmission schemes in the range of 132kv and 220kv of the states need not go to the Central Electricity Authority (CEA) for approvals. These can be cleared at the state level by the state governments themselves.

Secondly, state schemes of 220kv and above, which have a impact on other states and the regional grid, can be first discussed by a regional committee, headed by a CEA representative. After discussions, only those schemes which are above Rs 100 crore need to be submitted to the CEA for its approval. Lastly, in the case of all regional transmission system schemes, the committee has recommended that the existing procedures for investment approvals should continue.

Significantly, the committee has completely ruled out a private sector role in the preparation and approval of transmission systems. The CEA will continue to plan and approve these projects.

The incorporation of a host of important provisions in the Transmission Services Agreement (TSA) has been recommended. According to the committee, Independent Power Transmission Companies (IPTCs) will have to make a deposit with the Power Grid or SEBs.