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CERC clears nine transmission corridors worth Rs 58,061 cr

Business Standard:  June, 2010

Mumbai: The Central Electricity Regulatory Commission (CERC) has approved the state-run PowerGrid Corporation’s plan to set up nine High Capacity Power Transmission Corridors (HCPTC) costing Rs 58,061 crore. These transmission systems will evacuate power from various projects planned by independent power producers (IPPs).

The transmission corridors will evacuate power from IPPs in Orissa (to cost Rs 8,752 crore), Jharkhand (Rs 5,709 crore), Sikkim (Rs 1,304 crore), Madhya Pradesh and Chhattisgarh (Rs 1,243 crore), Chhattisgarh (Rs 28,824 crore), Krishnapatnam area in Andhra Pradesh (Rs 2,065 crore), Srikakulam area in Andhra Pradesh (Rs 2,986 crore), Tamil Nadu (Rs 2,357 crore) and southern region (Rs 4,821 crore).

CERC, in its order, observed that development of the corridors was considered necessary for evacuation of power from the projects envisaged during the 11th Plan.

The power shortage in the country in 2009-10, according to a Central Electricity Authority report, is 10.1 per cent in energy terms and 12.7 per cent in peak demand terms.

“The Commission, based on the report furnished by PowerGrid Corporation, which is a central transmission utility (CTU) on physical progress of Generating Units of IPPs, is satisfied that these High Capacity Transmission corridors are required for evacuation of the power from these IPPs and any delay in implementation of these transmission schemes may result in bottling up of the power,” the power regulator said.

The power projects are located either in the coal belt, or in coastal areas (which would use imported coal) or in the hydro power potential areas of the North-East. “Power from these projects has to be brought to the load centres in the northern and western regions, which requires development of transmission systems,” the power regulator added.

CERC has directed PowerGrid Corporation to ensure that the proposed transmission projects for which regulatory approval has been granted are executed within the time frames matching the commissioning schedules of the IPPs so that the beneficiaries are not burdened with higher interest during construction.