|
INDIA
BUSINESS WORLD -
JANUARY 2006
THE MONTH THAT WAS
RS 738-CRORE JOINT VENTURE BETWEEN POWER GRISD AND RELIANCE ENERGY
This could kick off a new era of publicprivate partnership in the power sector. Private power major Reliance Energy is set to partner Power Grid Corporation for a Rs 738.3-crore ($167-m) joint venture deal to construct two transmission projects. The deal is expected to be inked tomorrow.
The two companies have decided to form this joint venture to construct two major transmission lines to link two hydel projects to pump electricity for the northern region. Reliance Energy will be holding 74% in the company. The development comes close on the heels of the recent direct competition between the two players over some of the transmission projects in the western grid. PGCIL had earlier tied up with the Tatas for a similar joint venture for the Tala transmission link.
PGCIL chairman RP Singh said: “Reliance has been selected through an international competitive bidding process. We have decided to bring in more such PPP joint ventures by partnering all such private power producers who need partners to set up their transmission links. Power Grid will partner with a 26% stake.”
The Essar group was the only other bidder shortlisted for the project although there were eight players who had initially evinced interest.
|
