PGCIL wins 2 transmission projects for evacuation of solar power in Rajasthan

• PGCIL said that it has won the orders for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II

• For both the projects, the Letter of Intent (LoI) has been issued to PGCIL on January 29

New Delhi: State-run Power Grid Corporation of India Ltd (PGCIL) has secured two orders to set up transmission projects in Rajasthan, the company said in a regulatory filing to the stock exchanges on Saturday. "… Power Grid Corporation of India Limited has been declared as the successful bidder under Tariff based competitive bidding to establish following transmission systems," said the Maharatna PSU. PGCIL, however, did not disclose the value of these two orders. 

PGCIL to set up transmission systems for evacuation of solar energy in Rajasthan

Detailing the orders, PGCIL said that it has won the orders under the "Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II… on build, own, operate and maintain (BOOM) basis." The two projects are two parts under phase II — Part A and B. While Part A "… comprises the establishment of a new 400/220kV Substation, 400kV D/C Transmission lines and associated Substation extension works," Part B "comprises establishment of 765kV D/C Transmission line and associated substation extension works" in the state of Rajasthan.

For both the projects, the Letter of Intent (LoI) has been issued to PGCIL on January 29. 

ALSO READ: Power Grid files DRHP for InvIT, likely to launch it in March: Sources

The backdrop

The news comes just days after Power Grid filed a draft red herring prospectus (DRHP) to market regulator SEBI for its Infrastructure Investment Trust (InvIT). Power Grid plans to use the InvIT to monetise assets worth around Rs 7,000 crore and use the proceeds to pare the debt on its books and fund its capex, said sources. The power PSU has already secured approval from the Cabinet for the monetisation of assets worth more than Rs 7,000 crore in the first tranche. Sources who spoke to PSU Watch on the condition of anonymity said that assets worth Rs 10,000 crore may be monetised in subsequent tranches. Depending on the response received in the first round, further asset monetisation will be carried out by the Power Grid InvIT in the future.

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