Mumbai, June 26 -- Tata Power has won a power transmission project in Karnataka after emerging as the successful bidder in a tariff-based competitive bidding process run by PFC Consulting, a wholly owned subsidiary of Power Finance Corporation. The company received a Letter of Intent from PFC Consulting for a renewable energy evacuation scheme to be delivered under a Build, Own, Operate and Transfer model. The award follows a competitive selection and positions the firm to expand its transmission activities in the state.
As part of the contract, Tata Power will acquire the special purpose vehicle (SPV) created for the scheme and will be responsible for developing, operating and maintaining the transmission assets for the concession period. The firm will take on construction and long-term asset management obligations and will assume the commercial terms set out in the project documents. The arrangement transfers operational responsibilities to Tata Power while enabling the public client to leverage private investment.
The transmission scheme is intended to strengthen Karnataka's network and support the evacuation of renewable generation into demand centres. Project documents indicate annual transmission charges of Rs 5,210 million (mn), equivalent to Rs 521 crore, and the scheme is expected to generate those charges once commissioned. The capacity additions are designed to enable movement of power from generation hubs to load centres and to reduce congestion in key corridors.
The award adds to Tata Power's transmission portfolio at a time when India is increasing investment in power evacuation infrastructure to meet clean energy targets. The project is expected to improve transfer capability and facilitate integration of additional renewable capacity into the grid. Observers note the transmission segment is becoming central to the country's energy transition and private participation through BOOT deals is likely to continue.
Published by HT Digital Content Services with permission from Construction World.