Power Grid Corporation of India Ltd is planning to enlarge its role in the intrastate power transmission network upgrade, according to the company’s CMD, K. Sreekant.
Addressing an investor conference after announcing the company’s financial results for FY21, the PGCIL CMD observed that there was need to strengthen intrastate power transmission grids. Though the transmission capacity of India’s National Grid is getting enhanced, there should be commensurate improvement in intrastate grids. Only by this will ensure that electricity actually penetrate throughout the country, Sreekant observed.
Though PGCIL is primarily engaged with developing interregional lines, the Central PSU is also assisting certain states to develop their local grid. According to information available with T&D India, PGCIL is so engaged with at least two states—Bihar and Odisha. While in the case of Bihar, an equal joint between PGCIL and the state government has been formed, matters with Odisha are yet to progress.
PGCIL, in its recent investor presentation, has also identified intrastate power transmission as an immediate business opportunity. The Central PSU has estimated Rs.10,300 crore worth of immediate upcoming opportunities, out of a total of Rs.41,000 crore worth of total business opportunity. Out of this Rs.10,300 crore, PGCIL has estimated that Rs.1,000 crore would come from intrastate power transmission lines on TBCB model. Incidentally, the remaining Rs.9,300 crore would be accounted for by interstate transmission lines for renewable energy evacuation.
Lower Capex in FY22
PGCIL has significantly lowered its capital expenditure estimate for FY22. According to K. Sreekant, PGCIL would undertake capex worth Rs.7,500 crore in FY22, out of which over Rs.4,000 crore would come from TBCB projects while the remaining would be accounted for by RTM (regulated tariff mechanism) projects.
In FY21, PGCIL’s capex was much higher at Rs.11,284 crore (TBCB: Rs.4,020 crore and RTM: Rs.7,264 crore). It may be mentioned that in FY20, PGCIL undertook one of its highest annual capex, with the figure crossing Rs.15,300 crore.
Lower figures for capex are quite understandable due to the slowdown in decision-making due the pandemic. All the same, PGCIL would be focusing on capitalization of assets, which is to say, commissioning of projects. In FY22, according to K. Sreekant, PGCIL would be capitalizing assets worth around Rs.17,000 crore. Of this Rs.9,000 – Rs.10,000 crore would be through RTM projects while the remaining would be from TBCB projects.
Power generation
The PGCIL CMD also said that since the erstwhile CTU operations of PGCIL have now been hived off into a separate company, PGCIL would technically be in a position to enter the power generation segment—an activity that it could legally not pursue when it was entrusted with CTU operations. K. Sreekant said that there was surplus land available at PGCIL-owned substations. PGCIL was considering setting up of solar power plants on such land, Sreekant said, adding that the proposal was still in its early stage.
(Featured photograph for illustration only)
