Executives reveal Power Grid Corp’s overseas power ambitions

• 13 years ago (2011-10-14)
• Junior Isles

Africa 320

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State-run power transmission utility Power Grid Corp. of India Ltd (PGCIL) plans to enter the power generation sector abroad as part of its diversification plans.

“In India, we can’t get into power generation. We should get into other regions for the company’s growth. We plan to enter the power generation sector in other countries and are putting our people to work on this,” said an anonymous top PGCIL executive.

Under the existing Indian law, PGCIL is the only central transmission utility that can undertake transmission of electricity in India, but it is barred from entering the power generation business.

“We have restrictions in India to enter the power generation business, but overseas we can enter the sector,” said another PGCIL executive aware of the company’s strategy, who also wished to remain anonymous.

PGCIL has plans to enter the domestic power transmission business in Bangladesh and Sri Lanka by setting up companies there. The transmission utility operates 86 000 circuit km of transmission lines, and carries 50 per cent of the power generated in India.

In another development, as part of India’s overall strategy to strengthen relationships with African countries, PGCIL is planning a big investment push in Africa, ranging from acquiring assets in Nigeria, Kenya and Ethiopia to setting up transmission projects through the public-private partnership (PPP) route. It also plans to construct the Ethiopia-Kenya electricity interconnection that would bring 900 MW of power to Nairobi.

PGCIL’s Africa plans are part of the company’s strategy to expand overseas operations, as the proposed separation of key power management functions will leave it with just the task of setting up transmission links.

A senior power ministry official. Paul G. Ngatia, senior deputy secretary in Kenya’s ministry of energy, confirmed PGCIL’s plans and said: “There is a need for construction of transmission lines in Kenya. Only 20 per cent of our people have access to electricity. While today we generate 1400 MW, we will be requiring 5000 MW within the next 10 years. The feasibility report for the 1400 km Ethiopia-Kenya interlink is ready and we will be shortly floating a tender for the same.”