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POWERGRID & ILFS sign JV agreement
Thursday, January
17, 2008
State-run Power Grid Corporation of India Ltd. has entered
into a Shareholder’s Agreement with Infrastructure Leasing &
Financial Services Ltd. The new Joint Venture Company named
“POWERGRID IL&FS Transmission Private Limited” has since been
incorporated. Both POWERGRID and IL&FS will have 50% stake in
the company.
The main Objective of Company is to undertake activities of
project development of intra-state transmission and
sub-transmission works for State Power Utilities”, under
Public-Private-Partnership (PPP) route within India and abroad
including interconnection with neighbouring countries subject
to bilateral agreement between the countries.
Both Government of India and State Governments have embarked
upon implementation of massive generation capacities to bridge
the demand and supply gap. Till now, the State Transmission
Utilities (STUs)/SEBs had to invest their own funds to develop
transmission projects.
In order to meet the huge resources requirements by the
respective states in implementing the intra-state transmission
network and bridge the resources constraints, Ministry of
Power, Government of India in line with Electricity Act, 2003
have opened up transmission sector for development through
private sector participation and necessary guidelines have
been issued.
The guidelines of MoP envisage the selection of private
parties through a process of transparent methodology on the
consideration of lowest transmission tariff, after doing
necessary preparatory and development work for the
transmission project before it is offered for private sector
participation. This JV will facilitate project preparation and
development work for STUs and will act as a Bid Process
Coordinator (BPC) of STUs and manage the bidding process for
selection of the private implementing agencies. The Joint
Venture Company also has objective to undertake transmission
projects in the neighbouring countries.
The Joint Venture Company Board in its 1st meeting have
approved that the Company will broaden its scope of
development of transmission projects in India and abroad
including interconnection with neighbouring countries.
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