Essar Power Ltd has announced that it has entered into a definitive agreement with Adani Transmission Ltd (ATL) to sell the 400kV Mahan-Sipat power transmission line for Rs.1,913 crore.
The said transmission line, spanning 337 km, runs from Essar Power’s 1,200-mw Mahan power plant in Madhya Pradesh to the Sipat Pooling Station at Bilaspur in Chhattisgarh. Commissioned in September 2018, the Mahan-Sipat line is an integral part of Essar Power’s transmission portfolio of 465 km.
The Mahan-Sipat line is part of the interstate transmission scheme (ISTS) and facilitates evacuation from Essar Power’s 1,200 mw Mahan power plant in Madhya Pradesh. The line operates under the regulated tariff mechanism (RTM) framework of Central Electricity Regulatory Commission (CERC).
The entire power transmission portfolio of Essar Power is housed under Essar Power Transmission Company Ltd, a wholly-owned subsidiary of Essar Power.
Transmission portfolio
According to information available with T&D India, Essar Power’s 465-km power transmission portfolio, apart from the 337-km Mahan-Sipat line, includes:
- A 400kV line from Gandhar to Hazira, both in Gujarat (105 km)
- A loop-in loop-out (LILO) on the 400kV Vindhyachal-Korba transmission line (22 km)
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The power transmission portfolio of Essar Power therefore spans three states – Gujarat, Madhya Pradesh and Chhattisgarh.
It may be mentioned that the Gandhar-Hazira line and the LILO, both commissioned in April 2013, helped Essar Power fulfill its PPA obligation to Essar Steel Hazira, from the Mahan power plant.
Essar Power Transmission Ltd was incorporated in 2004 and in 2008, it received licence from CERC to operate transmission lines on the Gandhar-Hazira and Mahan-Sipat sections, under the regulated tariff mechanism, or the “cost-plus” mode. In June 2013, the company signed the transmission service agreement (TSA) with Power Grid Corporation of India Ltd, for the above lines.
Featured photograph (source: Essar Power) shows different elements of the 400kV Mahan-Sipat transmission line, straddling Madhya Pradesh and Chhattisgarh.