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Bhubaneswar: State owned Odisha Power Transmission Company Ltd (OPTCL) and central public sector Mahanadi Coalfield Limited (MCL) have formed a joint venture for execution of inter-state transmission projects.
"The new company is to develop intra-state transmission projects. Both PSUs will invest about Rs 1,500 crore in the next five years," energy secretary P K Jena told reporters.
The two companies formed the Nilachal Power Transmission Private Limited and signed a shareholder agreement yesterday.
A notification issued by the energy department said each shareholder would have equal equity and the joint venture company would have have separate transmission licence to be issued by Odisha Electricity Regulatory Commission (OERC).
The new company would give the entire transmission capacity to be created by it to the Grid Corporation of Odisha, the state's bulk power supplier.
Earlier, the OPTCL had signed an agreement with PGCIL for intra-state transmission.
Jena said it has become imperative to develop intra-state transmission system for generation by certain upcoming thermal power plants.
"As an estimated Rs 10,000 crore is required to develop additional transmission capacity during the 12th Five Year Plan period, the state government preferred to take partners," an official said.
Keeping the financial as well as organisational capability of OPTCL, the state government felt that it was not possible for the state PSU alone to spend Rs 2,000 per annum.
Therefore, it joined hands with MCL and PGCIL, the official said.
