RepPvtSectParticipatTransDec05

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Report on Private Sector Participation in Transmission (December 2005)

Introduction

Government of India (GoI) has an ambitious plan to add around 1,00,000 MW of additional generation capacity by the year 2012. It is proposed to add this capacity throughCentral generating units, State Power Utilities and private investors. The transmission system to evacuate the above quantum of power shall be taken up mainly by PowerGrid Corporation of India Ltd. (POWERGRID)-a Central Transmission Utility (CTU), State Power/Transmission Utilities and private investors. As far as investment inCentral transmission is concerned, an investment of about Rs 71,000 Crore is envisaged, out of which POWERGRID has planned to invest about Rs 50,000 Crore on its ownand the remaining Rs 21,000 Crore is expected to be brought in by private investors.

Historically, investments in Central Transmission Sector have been coming mainly through public funding in the form of internal resources generated by POWERGRID and

loans mobilized from domestic & external sources. With the mounting pressure on resources from the competing sectors, it is not possible to maintain a sustainable growthrate of Transmission unless resources from private sector are brought in.

Administrative and Policy Framework

To attract private investment of such magnitude, Government of India (GoI) has taken various steps to provide for an adequate administrative & legal framework.

Administrative Measures

In the month of February'97, Ministry of Power, Government of India, set up a Committee of experts to establish a suitable administrative and financial framework alongwith supporting legal enablements to facilitate private investments in the transmission projects. The Committee under the Chairmanship of Sh. D. Sankaraguruswamy, Ex-CMD, PFC submitted its report in July, 1997. The Government reviewed the report and various actions were initiated to establish a suitable legal framework to attract andinvite private investment.

Legal Framework prior to Electricity Act 2003

In order to facilitate the entry of private sector into t ransmission, it was needed to be delinked from generation to make it a distinct activity. To achieve this, the ElectricityLaws were amended through "The Electricity Laws Amendment Act, 1 998" and notified on 31.12.1998. This enactment not only treated transmission as a distinct activity

but also facilitated infusion of private sector in transmission as a "Transmission Licensee".

Simultaneously a new Act, namely, The Electricity Regulatory Commissions Act, 1998 was also brought into force. This Act provided establishment of a Central ElectricityRegulatory Commission (CERC) at the Central level and State Electricity Regulatory Commission (SERC) at the State level for rationalization of Electricity Tariff,transparent policies regarding subsidies and promotion of efficient and environmental benign policies. The private sector companies could now enter as "TransmissionLicensees" under the regulatory umbrella of CERC/SERC, which should provide comfort and confidence to private investors.

The establishment of an efficient transmission network is a pre-requisite for any power market in the country. Further, since the duplication of the facilities in thetransmission business is economically inefficient, the transmission grid shall have to operate as an integrated system with inter-regional inter-connections to provide openaccess for all market participants. Therefore, Government of India, on 31.12.98 notified Power Grid Corporation of India as a Central Transmission Utility (CTU), toundertake transmission of energy through Inter State Transmission System and discharge all functions of planning and co-ordination relating to ISTS. The CTU is also toexercise supervision and control over the inter-State transmission system.

Guidelines for Private Sector Participation

Keeping in view the Sankaraguruswamy Committee Report, the legal enablements and the experience gained during formulation of Mega Power Policy and throughinteractions with prospective private investors, merchant bankers, manufacturers, contractors, utilities, CEA & POWERGRID, MoP finalized "Guidelines" for private sectorparticipation in transmission. Since many agencies are responsible for development of power transmission system in the country, it was felt that these "Guidelines" would

establish a transparent and uniform techno-commercial frame work for the selection of private investor. The "Guidelines" were issued by MoP on 31.01.2000.

These Guidelines envisaged two routes for private sector participation in transmission ventures. The one, envisaging 100 % fund mobilization by private entrepreneur, iscalled Independent Private Transmission Company (IPTC) route. The second route envisages equity participation by CTU / STU, through formulation of a Joint VentureCompany (JVC) between CTU/STU and private agency selected as joint venture partner. In both the routes, the selection of private party is to be done by CTU/STU,through competitive bidding.

Legal Framework under Electricity Act, 2003

The Electricity Act, 2003; which has replaced the three existing legislations, namely, Indian Electricity Act, 1910, the Electricity (Supply) Act, 1948 and the ElectricityRegulatory Commissions Act, 1998, seeks to bring about a qualitative transformation of the electricity sector through a new paradigm. The Act seeks to create liberalframework of development for the power sector by distancing Government from regulation. The objectives of the Act are to consolidate the laws relating to generation,transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competitiontherein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies,promotion of efficient and environmentally benign policies, constitution of Central E lectricity Authority, Regulatory Commissions and establishment of Appellate Tribunaland for matters connected therewith or incidental thereto.

As per the Electricity Act 2003, Central Govt. is mandated to prepare and publish the National Electricity Policy and Tariff Policy and CEA is mandated to prepare the

National Electricity Plan in accordance with the National Electricity Policy of Central Govt. The Electricity Act 2003 also provides for role of CEA to formulate short-termand perspective plans for development of the electricity system and co-ordinate the activities of the planning agencies for the optimal utilization of resources. Functions ofCTU (POWERGRID) have been defined to discharge all functions of planning & co-ordination relating to Inter-State transmission system with various bodies and to ensuredevelopment of an efficient, coordinated and economical system of Inter-State transmission lines. CTU is a deemed Transmission Licensee under the Act.

No person shall transmit electricity unless he is authorized to do so by a license issued by CERC. A person is to make an application for grant of license to CERC andimmediately forward a copy of such application to CTU. CTU is to send its recommendations, if any, to CERC within 30 days of receipt of application. However, therecommendations of CTU shall not be binding on CERC and CERC can decide to issue the license even otherwise. The CERC is to specify the terms & conditions fordetermination of tariff and determine tariff for transmission licensee in accordance with the provisions of the Act. However, CERC shall adopt the tariff if such tariff hasbeen determined through transparent process of bidding in accordance with the Guidelines issued by the Central Government. CERC is also to advise the Central Govt. onpromotion of competition, efficiency and economy in activities of the electricity industry and promotion of investment in electricity industry, in line with the NationalElectricity Policy and Tariff Policy of Central Govt. and National Electricity Plan of CEA.

While, POWERGRID continues to be the CTU and a principle transmission utility to undertake inter-State transmission, development of National Grid, provide flexibilityfor integration of future generation schemes and creation of Transmission Highways, the intention of making the above provisions were to bring in other players who willfunction under the overall supervision and control of POWERGRID, the CTU. The Central Electricity Regulatory Commission will regulate inter-state Transmission ofenergy.

Other Initiatives to Attract Private Investment

As transmission sector was opened up for the first time for private investment and also considering the poor financial health of State Electricity Boards, i t was prudent thatinitially some financially viable agency takes the responsibility of making payment to the private investors, to insulate them from non-payments. POWERGRID took thisresponsibility for the initial project to begin with, to give a boost to the private investment particularly during its infancy stage. However, with the liberalization of theElectricity Sector, it is imperative that the Licensees tie up directly with the customers for the services being provided by them.

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The Government is aware that a tariff mechanism needs to be devised for private investors which provides for adequate compensation to the investors net only to meettheir debt servicing liabilities, O&M costs, return on equity etc. but should also provide attractive incentives for increasing system availability and efficiency. Keeping thisin view, the CERC has been mandated to develop an appropriate tariff mechanism, which is fair to the consumers, and facilitate mobilization of adequate resources fromthe private sector.

Power Sector has been identified as a key focus area to propel the Indian economy on its path of progress with the objective to provide affordable energy to the people. Thecountry offers great opportunities to Investors in the Transmission Sector. The policy initiatives taken in Transmission Sector have already paved the way to increaseinvestor confidence in this growing economy. A Transparent and level playing field is now available along with an Independent regulatory mechanism for promotingprivate participation in the Transmission Sector. Further steps are being taken up by Ministry of Power in this regard.

In compliance with Section 3 of the Electricity Act 2003, the Central Government has notified the National Electricity Policy. In addition to the other issues, the policy

addresses the issue of financing the power sector programmes including private sector participation. As per the policy, public sector investments will have to be stepped upand for this, a conducive environment has to be created for investments in all segments of power industry, both for public sector and private sector, by removing barrier toentry in different segments. The policy emphasis the need of providing return on investment in such a manner that the sector is able to attract adequate investment. Thepolicy states that steps would be taken to address the need for regulatory certainty to generate investor confidence and emphasise the need of a workable model for publicprivate partnership to enable leveraging private investment with the public sector finances.

Ministry of Power has drafted and is in the process of finalizing guidelines for tariff based bidding for transmission projects to facilitate establishment of transmissionprojects, which will be 100% owned by private entities. Further, Draft policy guidelines for private investment in transmission are also under finalization in MoP.

Status on Private Investment in Transmission Projects

Projects on Joint Venture Route

Specific Transmission Lines associated with Tala HEP, East-North interconnector and Northern Region Transmission System

This is the first transmission project being implemented on Joint Venture Route by the Joint Venture Company viz. Powerlinks Transmission Ltd. POWERGRID and TATAPOWER are the Joint Venture Partners in this Joint Venture company and hold 49% and 51% equity respectively. Approval of Govt, of India for investment in this projectand formation of Joint Venture Company was accorded on July 02, 2003 and the Joint Venture Company was formed on July 03, 2003. Various Agreements (Shareholders

Agreement, Implementation Agreement & Transmission Service Agreement) were signed on July 04, 2003. Approved estimated project cost of JV portion based on 1stquarter 2005 price level is Rs. 1612 crores with POWERGRID's equity contribution of Rs. 237 Crores (49% of equity) based on debt equity ratio of 70:30.

Loan Agreements were signed in January 2004. Financial closure of the project took place in May 2004. A total debt amount of Rs. 980 crores has been tied up with theconsortium of multilateral and domestic financial institutions viz IFC (Washington), ADB (Manila), SBI & IDFC as per details below:

All major contracts have been awarded by the Joint Venture Company and the project is under advance stage of implementation & likely to be commissioned by 2006.

The foiiowing transmission lines are being executed by the Joint Venture Company which start from Siliguri (WB) and go via Bihar upto Mandola (UP):

Specific Transmission Lines associated with Parbati-ll (800 MW) HEP and Koldam (800 MW) HEP

This is the 2nd transmission project envisaged to be implemented on the Joint Venture route and consists of the following transmission lines:

The estimated cost of the above two transmission lines on JV portion is Rs. 660 Crores based on 2nd quarter, 2005 price level.

Invitation for Selection of Joint Venture Partner (JVP) for execution of above two transmission lines was issued on February 02, 2004 on International Competitive Biddingbasis. Eight parties purchased the Request for Selection (RFS) document.

Pre-bid conference was held on April 30, 2004. Bid proposals were opened on July 28, 2004. Two parties submitted their proposal.

Reliance Energy Limited (REL) has been selected as the Joint Venture Partner through a process of international competitive bidding. Agreements relating to formation ofJV have been finalized with Reliance Energy Ltd. PGCIL's equity in this project shall be 26% and balance 74% will be of REL.

Transmission lines associated with above two generation projects are planned to be commissioned by 2008/2009.

400 kV AC Transmission Project for delivery of power from 750 MW Gas Based Combined Cycle Power Project, Pallatana, Tripura up to the Power Grid sub station atBongaigaon at the request of IL&FS / ONGC.

IL&FS / ONGC are developing a 750 MW Gas Based combined cycle power project at Pallatana, Tripura. They had requested POWERGRID to become 26% equity partnerin the transmission project which shall be executed by a Joint Venture Company. Following transmission system is envisaged under this project:

IFC Rs. 340 Crore

ADB Rs. 300 Crore

IDFC Rs. 180 Crore

SBI Rs. 160 Crore

Transmission Line Route length (approx)

i) Siliguri-Purnea 400 kV D/C (Quad. Conductor) 162 Kms.

ii) Purnea-Muzaffarpur (New) 400 kV D/C (Quad. Conductor) 242 Kms.

iii) Muzaffarpur (New) - Gorakhpur (New) 400 kV D/C (Quad. Conductor) 271 Kms.

iv) Muzaffarpur (New) - Muzaffarpur (BSEB) 220 kV D/C 22.3 Kms.

v) Gorakhpur (New) - Lucknow (New) 400 kV D/C 239 Kms.

vi) Bareilly - Mandola 400 kV D/C 237 Kms.

Transmission Line Route length (approx.)

Parbati-Koldam 400 kV Two s ingle Circuits (Quad. Conductor) with some D/Cportion

149 kms

Koldam-Ludhiana 400 kV D/C line (Triple Conductor) 153 kms.

S.No. Transmission System in NER I.E. from P ower Project (Pallatana) to Bongaigaon Route length (approx.)

I. Transmission Lines




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Estimated cost of the project based on 4 Quarter 2004 price level is Rs 1700 crores. The expected commissioning schedule of the project is 2008/ 2009.

IL&FS / ONGC are currently reviewing the draft agreements for taking up the transmission project with POWERGRID as JVP.

Hazira Transmission Project (ESSAR)

Essar Power is developing a gas based Generation project of 1500 MW, in two phases of 750 MW each, near Surat. Estimated cost of transmission project is Rs. 690 crores.The transmission system envisaged is as under:

Part: A

Substation

Navi Mumbai 400 kV (EXTN) GIS S/S Part-A

Part: B

Substation

Navi Mumbai 400/220 kV (EXTN) GIS S/S Part-B

POWERGRID had sent Draft Agreements to ESSAR Power on 26.10.05 for their confirmation. Essar has informed on 1.12.2005 of their intent to have JV with POWERGRIDand shall be reverting back on the draft agreements shortly.

The expected commissioning schedule of the project is 2008/ 2009.

400 kV line from 1000 MW Power Project at Karcham-Wangtoo Hydro Project at the request of Jaiprakash Associates Ltd.

Karcham-Wangtoo Hydro Project, located in HP is a 1000 MW (4x250 MW) promoted by Jaiprakash Associates Ltd. through a subsidiary. The transmission systemenvisaged is as under:

They have requested POWERGRID to become 26% equity partner in the transmission project which shall be executed by a Joint Venture Company. Estimated cost oftransmission project is Rs. 500 Crores. The draft MOU forwarded by POWERGRID has been discussed on 12.12.2005 and is expected to be f inalized shortly.

The project is expected to be commissioned progressively from April 2011.

Transmission system associated with generating project at Surat being developed by Torrent Power Generation Company Ltd. (TPGL)

Torrent Power Generation Company Ltd. is building a power plant of 1095 MW capacity near Surat in Gujarat. The transmission system envisaged is as under:

They desire the transmission system to be implemented on JV route with POWERGRID holding 26% equity. Estimated cost of transmission system proposed to beimplemented on JV route is approximately Rs. 220 Crores. One round of discussions has already been held on the Draft Agreements and further discussions are underwaywith them for f inalizing the details for implementation of this project on JV route.

The project expected to be commissioned in 2008.

Specific Transmission Lines associated with Maithon Thermal Power Station (1000 MW).

This transmission project, envisaged to be implemented on Joint Venture route, consists of the following transmission lines:

Estimated cost of the above transmission system is Rs. 810 Crores. Invitation for Selection of Joint Venture Partner (JVP) was issued on 09.02.04 on InternationalCompetitive Bidding basis. Pre-bid conference was held on 07.05.2004.

1.0 Pallatana-Silchar 400KV D/C Line 250 KM

2.0 Silchar-Bongaigaon 400KV D/C Line 430 KM

II. Substation Works

1.0 Silchar 400/220KV (New) S/S

2.0 Bongaigaon 400/220KV (Extn) S/S

Transmission Lines Route length (approx.)

Hazira - Navi Mumbai 400 KV D/C Line 355 Km

LILO of Vapi - Kawas (Quad) 400 KV D/C Line at Hazira 70 Km

LILO of Kharghar - Kalwa 400 KV line at Navi Mumbai 20 Km

Transmission Lines Route length (approx.)(i) Karcham Wangtoo - Abdullapur 400 kV D/C (Triple snow bird) 225 Kms

(ii) LILO of Nathpa Jhakri - Baspa 400 D/C at Karcham Wangtoo

Transmission Lines Route length (approx.)

(i) Akhakhol - Ahemadabad 250 Kms

(ii) LILO of Gandhar-Padhe line at Akhakhol


i) Balia - Unnao 765 kV S/C Line (to be initially operated at 400 kV level) 332 kms.

ii) Unnao-Agra 765 kV S/C Line (to be initially operated at 400 kV level) 287 kms

iii) MEERUT-Malerkotla 400 kV D/C Line 250 kms.

iv) Agra-Meerut 400 kV D/C Line 259 kms




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In view of the delay / uncertainty of execution of the thermal project, POWERGRID has currently postponed bid submission and opening date in respect of abovetransmission lines.

Projects on IPTC Route

Western Region System Strengthening Scheme-II (Projects B & C)

Western Region System Strengthening Scheme-II (WRSSS-II) transmission project was earlier envisaged to be implemented through Joint Venture route. The project wasenvisaged to be taken up through two JVs. POWERGRID initiated the solicitation process for inviting Private Sector Participation through Joint Venture (JV) route for thisproject consisting of substations and transmission lines. The estimated cost of the Scheme was about Rs. 4932 Crore.

Subsequently, the project was broken up into four sets (A, B, C & D), based on the advise of CEA and WREB. Sub-stations were proposed to be taken up by P OWERGRIDon its own. In the process of deciding the issue of grant of transmission license to a private player, CERC decided that two sets (A & D) be taken up by POWERGRID eitheron its own or through JV route and other two sets (B & C) be offered for 100% private participation. Accordingly, transmission lines covered under sets B & C are nowbeing implemented with 100 % private participation, while transmission lines under sets A & D shall be implemented by POWERGRID as its own project.

The execution of Sets B & C under WRSSS-II has now been undertaken through single stage selection process called Request for Selection. Bidders quoting lowest ProjectCost (base) including the Financing Package for each of the Projects B & C would be selected as IPTC(s) for implementing these Projects. Notice Inviting Tender for theseprojects on International Competitive Bidding basis issued on November 21, 2005 and the IPTCs are expected to be selected by August 2006. Estimated Cost of Project-B isabout Rs.964 Crore and that of Project-C is Rs.540 Crore. All elements of the Projects as below are required to be completed progressively by March, 2009:

Private Participation through "IPTC" Route undertaken earlier

POWERGRID during February,2001 had identified two 400 kV D/C transmission lines, viz Bina- Nagda (331 kms.) and Nagda-Dehgaon (332 kms.), to be built on IPTCroute on BOOT basis through International Competitive Bidding. The bidding document was prepared in consultation with an ADB appointed international Consultant,viz; M/s. K&M Engineering & Consulting Corporation, USA. POWERGRID proposed to select an Independent Private Transmission Company (IPTC) to constructtransmission lines through International Competitive Bidding (ICB) on fixed annual charge basis.

The Bidding was carried out in two stages, namely (i) Request for Qualification (RFQ) and (ii) Request for Proposal (RFP), in l ine with the Guidelines. Those applicants whoqualify, based on the RFQ, were to be invited to offer their techno-commercial and tariff proposals in response to an RFP.

The invitation for the RFQ stage was released in the press on 15th Feb, 2001. Fifteen applicants purchased the document. Out of these, 6 Applicants submitted theirQualification statements on the due date of 19.07.2001; whereafter 4 shortlisted entities were issued the RFP document. However, RFP proposal was submitted by only oneentity who eventually could not obtain license from CERC because of various issues involved. POWERGRiD has now been entrusted the responsibility of executing thisproject.

Other Joint Ventures

Misa-Byrnihat Transmission System

This transmission project is envisaged to be implemented in partnership with MeSEB on Joint Venture route. POWERGRID has signed an Agreement with MeSEB on08/09/2005 to implement the following transmission system on JV route:

Substations

a. Establishment of new 220/132 kV substation at Byrnihat with 2x160 MVA Transformers.

b. Extension of Misa 220/132 kV S/S

Estimated cost of the project is Rs. 143.59 Crores. POWERGRID shall contribute 89% equity and balance 11% equity shall be contributed by MeSEB. POWERGRID had sentdraft agreements to MeSEB on 4.10.05 for their confirmation. Their confirmation is awaited. Reminders also sent on 19.10.05. Ministry of Power was also requested forintervention on 26.10.05. MeSEB has informally conveyed that the proposal is under consideration of their Govt. and the decision shall be communicated shortly.

Transmission System associated with Parbati-II HEP (4x200 MW)

A. Scope under Joint Venture route :-

Transmission Lines:

Parbati-II - Koldam 400 kV (Quad) Single Circuit (S/C)-l line - 6 1 kms

Parbati-II - Koldam 400 kV (Quad) Single Circuit (S/C)-ll line - 68 kms.

400 kV (Quad) Double Circuit (D/C) portions (envisaged for forest areas, river crossing etc.) - 20 kms.

S. No. Transmission Lines under Western Region (WR) System Strengthening Scheme-ll, under Project-B & Project-C Appx. Line length

I. Project-B: For Regional Strengthening in Southern Maharashtra

i) Parli (New) - Pune 400kV D/C line 308 kms

ii) Pune - Aurangabad 400kV D/C line 225 kms

iii) Parli (New) - Pandharpur 400kV D/C line 196 kms

iv) Pandharpur - Kolhapur 400kV D/C line 189 kms

v) LILO of Lonikhand - Kalwa 400kV D/C line at Pune 24 kms

vi) LILO of Sholapur-Karad-400 kV S/C line at Pandharpur 25 kms D/C + 2 kms S/C

II. Project-C: For Regional Strengthening in Gujarat

i) Rajgarh-Karamsad 400kV D/C line 240 kms

ii) Limdi (Chorania) - Ranchodpura 400 kV D/C l ine 95 kms

iii) Ranchodpura - Zerda (Kansari) 400 kV D/C line 155 kms


a) 220 kV D/C Misa - Byrnihat Line 90 KM




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Realignment works at Koldam : 3 kms. of transmission line i.e. One ckt. of Koldam-Nalagarh Double Circuit (D/C) line (covered under Transmission Systemassociated with Koldam HEP) is to be opened from Koldam end and to be connected to one ckt of Parbati-II - Koldam line so as to create a direct Single Circuit (S/C)link between Parbati-II and Nalagarh.

Substations:

-- Nil*

At Parbati-II, the switchyard would be provided by National Hydro-Electric Power Corporation (NHPC).

At Koldam, the Substation bay vacated at Koldam Switchyard due to realignment of transmission line at Koldam end shall be used to terminate other ckt of Parbati-II - Koldam iine.

Transmission System associated with Koldam HEP (4x200 MW)

A. Scope under Joint Venture route :-

Transmission Lines :

Koldam - Ludhiana 400 kV Double /Circuit (Triple Aluminum Conductor Steel reinforced (ACSR)) - 153 Km

B. Scope under POWERGRID :-

Transmission Lines :

Koldam - Nalagarh 400 kV Double /Circuit (Quad) - 45 Km

Substations :

400/ 220 kV Nalagarh (Extension)

400/ 220 kV Ludhiana (Extension)

Transmission System associated with Tala HEP, East-North interconnector and Northern Region Transmission System

Powergrid's Portion

The scope of work for implementation through public funding by POWERGRID under the project for Construction of Transmission System associated with Tala HEP, East-North inter-connector and Northern Region Transmission System:-

Brief About Equity Participation in Joint Venture

The first Project floated by POWERGRID on Joint Venture, namely specific transmission lines under Tala Transmission Project, had provision of 26% equity participationby POWERGRID and 74% equity participation by the Private Player. During the course of discussions, M/s. Tata Power, who were identified as a prospective Joint VenturePartner, requested POWERGRID that the equity participation of POWERGRID may be considered as 49% since this would be of immense comfort to them as well as thelenders to the project, this being the first Joint Venture Project in Transmission Sector. The request was considered by the Board of Directors of POWERGRID and wasagreed to.

The next project floated by POWERGRID on Joint Venture Route, namely Parbati II & Koldam Transmission Projects as single package, had the provision of equityparticipation of POWERGRID in the range of 26% to 49%, with the flexibility given to the private player to contribute equity in the range of 74% to 51%. This was a part ofbidding documents conditions and was also one of the evaluation criteria for selection of the partner. M/s. Reliance Energy Ltd., who is identified as the prospective JointVenture Partner, has offered 74% equity in the Joint Venture. The Joint Venture is in the process of f inalization on this premise.

The first Joint Venture Project floated by POWERGRID provided for transmission charges payment comfort to the Joint Venture Company by POWERGRID. Similarprovision was also kept for the second project floated by POWERGRID on Joint Venture. During the course of investment approval for Koldam Transmission System, PIB

recommended that, while there is a case for deepening of the Public Private Partnership process in the implementation of Transmission Projects, revenue risk should beshared among the Joint Venture Partners in proportion to their equity. Accordingly, this issue was taken up with the prospective Joint Venture Partner, namely M/s.Reliance Energy Ltd., who has agreed that the Joint Venture Company shall sign BPTAs with the Beneficiaries and share the revenue risk. Further necessary actions shall betaken accordingly.

S.No. Description

1 Gorakhpur (POWERGRID)-Gorakhpur (UPPCL) 400kV D/C Line.

II Lucknow (New) - Unnao 400 kV D/C Line.

III LILO of Dadri-Ballabhgarh 400 kV D/C line at New Delhi (New).

IV 400/220 kV Muzaffarpur S/S (New)

V 400/220 KV Gorakhpur S/S (New)

VI 400/220 KV Lucknow S/S (New)

VII 400/220 kV New Delhi S/S (New)

VIII 400kV Gorakhpur S/S (UPPCL) (Extension)

IX 400kV Unnao S/S (UPPCL) (Extension)

X 400kV Bareilly S/S (UPPCL) (Extension)

XI 400kV Mandaula S/S (Extension)

XII 400kV Siliguri S/S (Extension) (Relevant Portion)

XIII 400kV Purnea S/S (Extension) (Relevant Portion)

XIV 220kV Muzaffarpur S/S (BSEB) (Extension)

XV 40% Fixed Series Compensation (FSC) and 5% to 15% ThyristorControlled Series Compensation (TCSC) on each Ckt. of Purnea-

Muzaffarpur 400 kV D/C and Muzaffarpur-Gorakhpur 400 kV D/Clines


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