New Delhi: India's only power transmission firm Power Grid Crop. is facing a cost escalation due to delay by NTPC in completing the Koldam hydro power project in Himachal Pradesh with costs already crossing over Rs 1,000 crore.
"PowerGrid Corporation has so far incurred Rs 1,100 crore for setting up the transmission network for the Koldam project of NTPC in Himachal Pradesh," a Power Ministry official said.
Originally, the cost of laying transmission was pegged at about Rs 700 crore, whereas the central transmission utility has already spent Rs 1,100 crore and the hydro power project is still not completed.
NTPC's 800 MW Koldam project was scheduled for commissioning in 2009 but has been getting delayed on account of stalled due to land acquisition and contractual problems.
This has led to increase in the cost of project including that of the transmission network.
Sources in the know said that projects may not be ready before March, next year causing over three years delay in the project.
Approved at an investment of over Rs 4,500 crore, Koldam is NTPC's ambitious hydro power project and more so after the company's 600 MW Loharinag Pala project in Uttarakhand was scrapped due to environment issues.
NTPC, which currently has an installed capacity of over 34,000 MW, is yet to make a breakthrough in hydro power generation.
It has a 520-MW Tapovan Vishnugad project in Uttarakhand under construction to be commissioned next year.
Meanwhile, PowerGrid Corp is engaged in the execution of a transmission line in Kabul, Afghanistan and is also doing consultancy work in the war-torn country. The company is providing consultancy services in Dubai, Bangladesh, Bhutan, Nepal, Sri Lanka and Nigeria.
In order to enhance its presence and exposure in the international market, PowerGrid is looking at opportunities in Saudi Arabia, Oman, etc.
Published Date: Jun 14, 2011 07:25 pm | Updated Date: Jun 14, 2011 07:25 pm