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PresentationPresentationonon

Investment Investment OpportunitiesOpportunitiesin Transmission Sector in Transmission Sector

in Indiain India

Power Grid Corporation of India Ltd.

Indian Power Sector – A Profile

Installed capacity – 1,12, 000 MW (Thermal – 76% Hydro – 23% Nuclear –1%)Peak Demand – 86,000 MWTransmission lines – More than 5 Million Ckt. KmsRegional Grids – 5National Grid under various stages of implementationGrowth Rate of energy – 9% per annum

About POWERGRIDOne of the largest and best managed transmission utility in the World, owning and operating network of over 48,000 ckt. Kms. of transmission lines at 765 kV, 400 kV & 132 kV levels and 82 sub-stations with transformation capacity of about 46,500 MVA.

One amongst six transmission utilities in the World achieving 99% line availability, consistently.

Wheels more than 200 billion units (worth Rs. 400 billion) per year - 40% of total generated power in the country.

1992-93 2003-04 Growth(%) Physical Performance

No. of Sub-stations 39 82 110MVA capacity 13,200 46500 252Circuit kms 23,000 48000 108Inter-regional transfer 500 8500 1600capacity (MW)

Financial Performance (Rs Crore)Net profit 237 748 217Turnover 634 2805 342

No.of employees 5,725 6,925 21

POWERGRID Growth profilePOWERGRID Growth profile

The GoalBy year 2012 :

Additional 100,000 MW capacity.Integrating Regional Grids into National Grid with 30,000 MW of Inter Regional transfer capacity.Access to 45 % remaining households.

Investment requirement of about US$ 200 Billion for Generation, Transmission & Distribution.

Investment Outlay for Transmission

(Rs. in crore)

49,62828,25821,370POWERGRID’s Outlay

20,89511,1859,710Private Sector Contribution

70,52339,44331,080Central Sector(Transmission +

Telecom)

TotalXI PlanX Plan

POWERGRID’s Investment(Rs.in crore)

49,62828,25821,370Total(A+B)1,4962601,236Equity in NLDO1,0041,004Base Network2,5002602,240B.Telecom

2,1022,01983Others204204Investments in JV

1,0161,016ULDC Projects

29,15921,9607,199Inter-regional/Inter Country Links

3,1923,192Grid Strengthening Projects

11,4564,0207,436Generation Linked Projects

47,12927,99919,130A. Transmission

TotalXI PlanX Plan

POWERGRID’s Investment during X Plan (Rs. in Crore)

21,37038964138486851163352Total (A+B)

1,2362993183053140Equity in NLDO

1,00400122616266Base Network

2,240299318427930266B. Telecom830006326Others

204288673170Investments in JV

1,016064196401355ULDC Projects

7,19916431507172912681052Inter-regional/Inter Country Links

3,19201808451307860Grid Strengthening Projects

7,4361926198315981130799Generation Linked Projects

19,13035973820444141863086A.Transmission

X Plan06-0705-0604-0503-0402-03

Private Sector Participation through Private Sector Participation through Joint Venture RouteJoint Venture Route

A. Project Finalised under JV RouteThe 1st Inter State Transmission Line Project associated with Tala HEP being set up through Joint Venture with Tata Power on BOOT basis –July, 2003.Transmission License granted to the JVC viz; Powerlinks by CERC in Nov. 2003 & a new chapter in Transmission starts.

……Contd.

Financial Closure achieved in May 2004 with funding from IFC, ADB, IDFC and SBI (Rs.9800 million), estimated project cost Rs. 14000 million and route length 1171 kms.

B. Projects under B. Projects under finalisationfinalisation on JV Routeon JV RoutePart of the Transmission system associated with Parvati-II (800 MW) & Koldam HEP (800 MW)Estimated project cost-Rs. 4650 m (US $ 100 m)Part of the Transmission system associated with Maithon TPS (1000 MW)Estimated project cost – Rs. 8100 m (US $ 160 m)

…..Contd.

C. New Projects on JV Route

Western Region System Strengthening Scheme – II under two Projects – A & B.Consists of 800 ckt. kms of 765 kV lines, 6300 ckt. kms of 400 kV lines, augmentation of 18 substations & setting up of 3 new substations.Estimated cost Rs. 48300 m Two part Solicitation process consisting of RfQ& RfP stages.

….Contd.

Modus Operandi for WR SSS-II

Short-listed bidders to quote base price of the project which shall be subject to price variation as per specified formula with financial package.D:E ratio to be 70:30JVP to contribute equity in the range of 51-74 % Lowest evaluated bidder to be selected as Joint Venture Partner.SHA & IA to be signed with POWERGRID.TSA to be signed with SEBs/Beneficiaries.

Thank You