Reliance Energy’s Transmission projects appears to have hit a bit of roadblock. Two projects-a joint venture with PowerGrid for the Parbati-Koldam transmission line and the Western Region System Strengthening Scheme II-could well be delayed.
Reliance Energy Transmission, a subsidiary of Reliance Energy, won the bid for the Western Region System Strengthening Scheme II through a international tariff based competitive bid in November last year. The private transmission developer is yet to receive the letter of selection from the central transmission utility, PowerGrid (PGCIL). The letter of selection was due by the end of December. Sources said that the Central Electricity Regulatory Commission has written to PGCIL asking it to issue the letter so as to ensure that the project is commissioned in time. RETL will have to apply to the central regulator for a license by mid-April. The project is to be commissioned by March 2010. When contacted by ET, PowerGrid officials said that the letter would be issue after due diligence was completed. As per the time schedule, the evaluation of transmission service charge and buy-out proposals followed by the issue of the letter of selection should have been completed by December-end.
Reliance Energy’s joint venture with Power Grid Corporation has been on hold since January last year. The Rs 738.3-crore joint venture would construct two transmission lines connecting the 800 mw Parbati hydroelectric project being developed by NHPC and the 800 mw Koldam hydroelectric project being developed by NTPC. Reliance Energy was to have a 74% stake in the JV. Though the two companies were to ink a joint venture agreement early last year, but the JV is yet to get off the ground. The shareholder’s agreement and other documentation leading to the formation of the joint venture company should have been issued within 45 days of the letter of selection, however that has not happened.
According to Reliance Energy officials, there have been as many as ten postponements. Sources said that the delay was on account of certain issues relating to government policy.
INDIA TIMESReliance Energy Transmission, a subsidiary of Reliance Energy, won the bid for the Western Region System Strengthening Scheme II through a international tariff based competitive bid in November last year. The private transmission developer is yet to receive the letter of selection from the central transmission utility, PowerGrid (PGCIL). The letter of selection was due by the end of December. Sources said that the Central Electricity Regulatory Commission has written to PGCIL asking it to issue the letter so as to ensure that the project is commissioned in time. RETL will have to apply to the central regulator for a license by mid-April. The project is to be commissioned by March 2010. When contacted by ET, PowerGrid officials said that the letter would be issue after due diligence was completed. As per the time schedule, the evaluation of transmission service charge and buy-out proposals followed by the issue of the letter of selection should have been completed by December-end.
Reliance Energy’s joint venture with Power Grid Corporation has been on hold since January last year. The Rs 738.3-crore joint venture would construct two transmission lines connecting the 800 mw Parbati hydroelectric project being developed by NHPC and the 800 mw Koldam hydroelectric project being developed by NTPC. Reliance Energy was to have a 74% stake in the JV. Though the two companies were to ink a joint venture agreement early last year, but the JV is yet to get off the ground. The shareholder’s agreement and other documentation leading to the formation of the joint venture company should have been issued within 45 days of the letter of selection, however that has not happened.
According to Reliance Energy officials, there have been as many as ten postponements. Sources said that the delay was on account of certain issues relating to government policy.
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