New Delhi: World Bank will give a loan of $1 billion (about Rs5,000 crore) to power transmission company PGCIL this year for developing infrastructure in the sector.
“World Bank will provide $1 billion to PowerGrid by June this year and the Centre has agreed to stand guarantee for it,” sources close to the development said.
PowerGrid Corporation of India Ltd (PGCIL) has won transmission projects for the three Ultra Mega Power Projects (Sasan, Mundra and Krishnapatnam) awarded by the government.
Upgradation of electricity transmission network of the country in the current Plan Period (2007-12), requires investment to the tune of Rs70,000-75,000 crore and the World Bank loan would form a part of this investment.
Out of the total investment the private players are expected to pump in Rs20,000 crore and the rest would be spent by the public sector utilities including PowerGrid.
PowerGrid which plans to set up an inter-regional transmission capacity of 37,000 MW and 67,000 circuit kilometres of transmission lines by the end of the current plan period is investing around Rs75,000 crore for the same during the stipulated time period.
It recently commissioned the Ranchi-Sipat transmission line enhancing power transfer capacity from 1,200 MW to 3,000 MW between eastern and western regions.
With this achievement, total inter-regional power transfer capacity of National Grid has been enhanced to 18,700 MW from the existing level of 17,000 MW.