According to reports, in a major development in the power sector, the state government has agreed in principle to enter into a long-term joint venture (JV) with PowerGrid Corporation of India Limited (PGCIL) in the state transmission utility network.
This was decided at a high-level meeting held here on Monday evening which was attended by energy minister Bijendra Prasad Yadav, PGCIL CMD R N Nayak, principal secretary energy Ajay V Nayak, BSEB chairman P K Rai, PGCIL director (projects) I S Jha and executive director (eastern region) Bhaskar Sharma.
Talking to TOI energy minister Yadav said that the formal Memorandum of Understanding (MoU) for a period of 25 years would be signed between PGCIL and BSEB some time next month.
Several funding agencies, including World Bank, Asian Development Bank and Power Finance Corporation (PFC), have also agreed to finance the project which will cost nearly Rs 6,000 crore, the minister said.
Meanwhile, Eastern India Power Engineers’ Federation vehemently opposed the JV with PGCIL. Federation’s secretary general BL Yadav has urged CM Nitish Kumar and energy minister Bijendra Prasad Yadav to withdraw the decision with immediate effect in the larger interest of the state.
“PowerGrid is encroaching into the territory owned by the state transmission utility (STU). The present JV proposal is nothing but a desperate move of PowerGrid to have its say at the cost and health of STU,” Yadav said.
According to official sources, with this JV project, Bihar’s rickety transmission lines spreadthroughout the state will be replaced and repaired. The PGCIL is likely to coordinate, supervise and control the complete intrastate transmission system, said another official.
With the necessary replacement and repair work of transmission line, the transmission and distribution loss will be drastically cut down. The consumers of Bihar will be getting quality power supply in the state, said an expert.
Recently, PGCIL has also proposed developing Firozabad, a town near Agra, as a model of the ambitious ‘smart grid-smart city’ project that would add a new dimension to power distribution. PGCIL and the UP Power Transmission Corporation would join hands for a Joint Venture (JV). The JV would ensure transmission of power with an eye to production and demand in the state.
PGCIL and BSEB to sign an MoU for a period of 25 years for better transmission utility network
The Rs 6,000 crore worth project will be funded by World Bank, Asian Development Bank and Power Finance Corporation
An official feel Bihar’s rickety transmission lines will be replaced and repaired through the project
The transmission and distribution loss will be drastically cut down and the consumers will be getting quality power supply in the state
PowerGrid is encroaching into the territory owned by the state transmission utility. The present JV proposal is nothing but a desperate move of PowerGrid to have its say at the cost and health of STU. So it should be stopped with immediate effect.