According to information tabled in Parliament, there is no cost overrun in power transmission schemes under execution by Power Grid Corporation of India Ltd (PGCIL), under the TBCB route.
It was informed in Parliament that though there has been time overrun in PGCIL’s TBCB (tariff-based competitive bidding) projects, there is no cost overrun, based on revised approved cost estimates.
It was informed that PGCIL is currently executing 17 transmission schemes under the TBCB route with an aggregate cost estimate of around Rs.13,480 crore. The time overrun in these projects ranges from 1 month up to 16 months.
According to an estimate made by T&D India, the average cost overrun in PGCIL’s projects, weighted by the project cost, works out to 8.7 months.
The Eastern Region System Strengthening Scheme (ERSS) – XVIII is likely to see the highest delay of 16 months. This is also the project with maximum project cost , at Rs.3,500 crore, in the current shelf of PGCIL’s TBCB projects under execution. The project which was supposed to commission in December 2020 (as per the latest approved schedule) will now do so by April this year. The project SPV implementing this project is Powergrid Medinipur Jeerat Transmission Ltd. (Project background)
Incidentally, of the 17 projects currently underway, as many as 16 are likely to commission in the remaining months of 2022.
Reforms
Regarding key reforms in the policy framework, it was informed in Parliament that the planning and approval process of interstate transmission system (ISTS) project was simplified in FY22. Accordingly, dual consultation for ISTS planning at the regional level has been done away with, and the powers to approve ISTS schemes up to Rs.500 crore have been delegated to the Central Transmission Utility and the National Committee on Transmission.
It may be recalled that the CTU-related operations, earlier performed by PGCIL, were hived off into a separate subsidiary of PGCIL, called Central Transmission Utility of India Ltd. This new entity started formal operations on April 1, 2021.
Featured photograph (source: Godrej & Boyce) is for representation only
