India's Powergrid yet to ink transmission agreement

Mandated by the World Bank.

Under it's funding scheme for transmission network, India's Powergrid needs to sign a consultancy agreement with the Ministry of Power and state utilities for strengthening the transmission infrastructure in the north-east.

It is facilitating the process of setting up transmission and distribution lines under the first phase of a WB loan totaling USD 500 million.

As of now, the governance structure involving WB, MoP, Powergrid and states is slightly ambiguous and inking the agreement will be a step closer towards defining the scope of work for each entity.

There is also an urgent requirement to lay down the terms and conditions for payment of consultancy fee by the power ministry to Powergrid.

The channel of funding from the MoP to states, and subsequently to contractual agencies, is yet to be finalized and will be included in the pact itself.