Powergrid looking for JV partner

Powergrid Corporation of India is looking out for a JV partner for creating common highway on their transmission networks.

R P Singh, Chairman and MD, Powergrid Corporation of India was in Pune to open up the high masts lighting and galvanizing unit of Baja Electricals. Baja Electricals is also engaged in the manufacture of transmission towers.

Singh said that they were looking for a National Long Distance Operator (NLDO) since they did not possess any expertise in this area. Powergrid will be investing a sum of Rs 1,100 crore over the next two years to create the basic telecom infrastructure. Their JV partner will come into the picture after the infrastructure is in place.

Singh believed that it would take at least one year to identify a potential partner. The corporation will be inviting fresh bids in June 2001 since the NLDO market was thrown open. 

Singh explained how laying cables on transmission networks was a cheaper option. Speeds were also faster with more than 2 km being covered per day. This could be at least 30 percent cheaper than land cables, he said, adding that these were more advantageous preventing them from rodent attacks and natural disasters like floods.

According to Singh, funds did not pose a major problem. "We will be getting funds from the World Bank. The recent Rs 150 crore bond issue fetched around Rs 580 crore. We also have received credit to the tune of $ 450 million," he said. So far the corporation has laid at least 4,000-km of fiber in transmission networks.

(CNS)