Power Grid Seeking Cancellation Of R-Infra Projects

The Power Grid Corporation of India has asked the Central Electricity Regulatory Commission (CERC) to cancel two transmission projects of Reliance Infra (R-Infra) worth a total of Rs 4100 crore on grounds of a delay in contraction of these two projects. R-Infra had bagged these projects in 2009. According to Power Grid, R-Infra has not begun any work on these projects, which is affecting the construction of other transmission projects.

R-Infra has attributed issues in land acquisition as the main reason behind the delay in construction of the North Karanpura transmission line. This project will evacuate electricity from the Eastern states and supply it to distribution companies in Uttar Pradesh and Maharashtra.

In case of Talcher-II, R-Infra has said that the delay in clearances is main reason why this project is behind schedule. Talcher-II was to evacuate electricity from the Eastern region to supply to Southern states, which are facing a huge power crisis.

Issues in the power sector have been taking a huge toll on the companies, but after the recent measures, there are signs that the pressure may ease. However, it should be noted that after the problems faced by generation, it may be the turn of transmission projects to dampen investor sentiment. The power deficit in a few states remains over 6%-7%, while during the peak time, power deficit in prominent states remains in double digits. Development of a transmission network is vital for our country and cancellations/delays in projects is not a good sign.