Power Grid Corporation of India Ltd (PGCIL) has estimated work-in-hand of over Rs.50,000 crore.
According to an investor presentation, PGCIL has estimated work-in-hand of around Rs.50,500 crore, as of September 30, 2023. Over 70 per cent of this are from projects associated with evacuation of renewable energy.
The total work-in-hand comprises Rs.9,700 crore from ongoing RTM (regulated tariff mechanism) projects, Rs.24,300 from new RTM projects, and Rs.16,500 crore from “other” projects.
Ongoing RTM projects include those for which the PGCIL board has accorded investment approval, while the new RTM projects are those for which such approval is pending. “Other” projects include, inter alia, TBCB (tariff-based competitive bidding) projects worth around Rs.13,000 crore and about Rs.2,800 crore for smart metering projects. It may be mentioned that PGCIL has been mandated to deploy 69 lakh smart meters by two state-owned discoms in Gujarat.
The Rs.24,300 crore worth of new RTM projects mainly includes the Ladakh HVDC project estimated to cost Rs.20,700 crore. This mega HVDC project will entail Central financial assistance (CFA) to the tune of 40 per cent of the total outlay. As the modalities of this CFA disbursement to PGCIL have yet to be finalized, the investment approval by PGCIL board is yet pending.
Also read: PGCIL Commissions Intrastate Scheme In Uttar Pradesh
Long-term business opportunity
PGCIL has estimated a total business opportunity of Rs.1,88,000 crore between now and 2032. Of this Rs.1,71,000 crore would come from all types of transmission projects – interstate, intrastate, cross-border and international projects. The biggest chunk is seen coming from interstate transmission schemes (both RTM and TBCB) where the opportunity size is estimated at Rs.1,16,500 crore. Intrastate transmission projects, where PGCIL is quite active in states like Uttar Pradesh, the opportunity scope is estimated at around Rs.37,000 crore.
