Karnataka opens power transmission sector for private companies through BOOT model

For the first time in Karnataka, two power substations, including Hampapura Power Transmission Limited (HPTL) in Mandya district and Mekhali Power Transmission Limited (MPTL) in Belagavi, will be handed over to private companies in the Build, Own, Operate and Transfer (BOOT) mode for a prescribed number of years if the Karnataka Electricity Regulatory Commission (KERC) gives its nod.

Karnataka Power Transmission Corporation Limited (KPTCL) has written to KERC to issue a transmission licence to the private companies who emerge as the lowest bidders.

HPTL and MPTL were set up as Special Purpose Vehicles (SPVs) by REC Power Development and Consultancy Limited (RECPDCL) under the Ministry of Power, Government of India, for intra-State power transmissions. While Resonia limited, a private company, emerged as the lowest bidder for HPTL, Dilip Buildcon Limited, another private company, emerged as the lowest bidder for MPTL via the Tariff Based Competitive Bidding (TBCB) process done through inviting tender notifications.

The HPTL project involves establishing a 400/220/33 kV substation at Hampapura along with associated transmission lines in Mandya to ensure reliable power supply to downstream 220 kV substations and address constraints in the 220 kV network in Mandya.

A 220 kV double circuit transmission line of around 125 km will link Hampapura with Nagamangala, Maddur, Tubinakere and Huygonahalli.

Similarly, MPTL also involves a 400/220/33 kV substation in Mekhali with roughly 470 circuit kilometres of associated transmission lines. This double circuit line of 320 km will link Mekhali with Yalawar and Dhoni and a 220 kV double circuit transmission line of 130 km will link Mekhali with Kudachi, Aques and Mahalingapura.

According to the KERC, the Ministry of Power had approved the transfer of shares held by RECPDCL in HPTL to Resonia recently and in MPTL to Dilip Buildcon Limited. After all the paperwork, a Transmission Service Agreement (TSA) was simultaneously executed between HPTL and KPTCL.

Now, the KPTCL has recommended that KERC grant a transmission licence under Section 14 of the Electricity Act 2003 to both companies stating that they satisfy the prescribed eligibility criteria.

Speaking to The Hindu, a senior official from KERC explained, “We have issued a public notice for any objections or suggestions before September 1. This should not be mistaken for power distribution licence. This licence is for power transmission and the companies will operate it under BOOT mode for a prescribed period and tariff. Later, it will be either transferred to the State nodal agency or the same contract will be continued depending on their performance.”

Emphasising on the scenario in other States, the official said, “Karnataka is one of the very last States which is doing it now. In other States, some 90 projects have already been given licences for transmission of power.”