Power Grid, private players ink Rs. 48k-cr pact

Boosting its energy generation capacity, PowerGrid Corporation of India Limited (PGCIL) has entered into an agreement with 37 private players for an investment of about Rs. 48,000 crore and pushing power generation capacity to over 42,000 MW.

Company sources said that agreement would help the power utility to move ahead with its plan of the implementation of seven proposed high capacity transmission corridors for evacuating and wheeling power from a chain of private projects coming up across eastern and southern parts to the power paucity northern and eastern regions of the country.

Sources further added that of the 41 private project developers, who were invited for the pact, only 37 signed long term transmission agreements by furnishing bank guarantees of Rs. 835 crore and remaining project developers are expected to complete related formalities including the requisite financial conditions by the end of March. All the selected power projects are on the horizon and reached the most mature stage and some of them are nearing commissioning while others will be completed in the next couple of years.