India's Adani group targets power transmission projects

The Adani Group is eyeing to bid for power transmission line development projects.

Traditionally, state-run Power Grid Corporation of India has been the developer of inter-state transmission lines and private companies would be contractors to them. But with the government opening up the sector to private developers, companies are keen to participate in these projects as the total investment in the sector in the next five years is pegged at around 2 lakh crore.

"We started the transmission business to support our power generation business. We did not participate in any transmission projects earlier because we were setting up 10,000 crore of transmission line to support 50,000 crore investment on power generation," said Adani's founder chairman Gautam Adani.

"As and when governments come up with bids for transmission projects, Adani Group would be interested in participating in it," he said.

This is a segment so far dominated by two private sector companies that have bagged most of the projects, namely, Reliance Infrastructure and Sterlite Grid.

The Gujarat-based Adani Group forayed into power transmission by setting up a double circuit transmission system connecting its Mundra power plant to Dehgam. Last week, it commissioned another transmission line connecting the Mundra unit to Mohindergarh in Haryana. It is also setting up two transmission projects for evacuation of power from its power plant at Tiroda in Maharashtra.

"We have set up the 980-km long Mundra-Mohindergarh project in 24 months with an investment of 3,400 crore. India has only 3-4 high voltage direct current lines, and this is the first time private sector has done it," Adani said.

Adani group is also seeking a commercial licence for its Mundra-Mohindergarh project since it would be transporting only 1,500 MW of electricity through the system from the Mundra power plant, while the system has a capacity to transport up to 2,500 MW.

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