The bid process coordinator of PFC Consulting Ltd (PFCCL) has accomplished transferring two of the project special purpose vehicles (SPVs) regarding the interstate transmission system (ISTS) schemes to Power Grid Corporation of India Ltd (PGCIL). This strategic move falls under tariff-based competitive bidding (TBCB).
Sirohi Transmission Ltd
For evacuation of power from Rajasthan REZ Phase–IV (Part 2: 5. 5 GW) (Jaisalmer/Barmer Complex) Following Items are proposed: Part B New 765/400 KV Substation near Sirohi in Rajasthan New 765KV& 400KV Double Circuit Transmission Line Sirohi-Chittorgarh-New Substation Construction & Extension Works at existing Substation Chittorgarh and Fatehgarh-IV in Rajasthan.
Beawar-Mandsaur Transmission Ltd
Transmission system for evacuation of power from Rajasthan REZ Phase-IV (Part 2: 5. 5 GW) (Jaisalmer/Barmer Complex) Part D. Construction of double circuit 765kV Transmission Line and associated bay extension works to the existing substations at Beawar in Rajasthan & Mandsaur in Madhya Pradesh.
Project Cost and Formal Transfer Completion
The two schemes are estimated to cost Rs. 5,500 crore by the National Committee on Transmission (NCT). Both schemes will require a gestation period of 24 months. The legal assignment of two special purpose vehicles, which were established as fully-owned subsidiary entities of PFCCL, occurred on August 22, 2024. The letter of intent for the development of these two schemes was received by PGCIL on May 9, 2024.
Role in Renewable Energy Projects
PFC Consulting Ltd (PFCCL) has emerged as one distinct, powerful force that is directly involved in the enhancement of renewable energy in India. PFCCL is specifically involved in interstate transmission system (ISTS) projects. They help in the construction of Installations such as transmission lines, substations, and other related facilities to export green energy to the National Grid. PFCCL carries out TBCB processes involving special purpose vehicles (SPV) for projects. These SPVs are bought by successful bidders like Power Grid Corporation of India Ltd (PGCIL) to carry out transmission projects.
Growth Policy of PFC Consulting Ltd.
PFC Consulting Ltd (PFCCL) is a wholly-owned subsidiary of the PFC and has a growth policy based on sustainable development and strategic actions. PFCCL operates in tariff-based competitive bidding (TBCB) regimes. They convey project special purpose vehicles (SPVs) to successful bidders through auctions as in the recent exposure to two ISTS schemes to PGCIL. PFCCL is mainly devoted to interstate transmission system (ISTS) projects. Commonly known as developers, they help improve the power transmission infrastructure of India by constructing transmission lines, substations, and other supporting structures.
This in turn helps PFCCL to achieve the goal of cost-effective delivery of projects. It must be noted that financial decisions made are consistent with those of the Ministry of Power. PFCCL engages in partnerships with industry players, governments, and various organizations. They tap into this strength in power transmission and consultation services.
Thus, PFCCL seeks the next revenue stream within India and outside by developing cross-border projects and collaborations. Their growth spans across the neighboring countries and the international market. The gist of the growth policy of PFCCL includes efficiency concerns, strategic alliance, and a sustainable development plan in the context of the transmission of power.
Conclusion
During the current fiscal year up to August 22, 2024, nine ISTS-TBCB schemes have been successfully handed over to the developers and PGCIL has the major chunk of share. The successful transfer further demonstrates PGCIL’s objective to enhance India’s power transmission networks by acquiring better assets and implementing the acquired projects effectively.
