Lok Sabha Question No. 476 (STARRED), answered on 2017-04-06
Subject: Bids for Power Transmission Sector
Ministry: POWER
Asked by: JYOTIRADITYA MADHAVRAO SCINDIA, SUSHMITA DEV

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.476 TO BE ANSWERED ON 06.04.2017

## BIDS FOR POWER TRANSMISSION SECTOR

*476.   SHRI JYOTIRADITYA M. SCINDIA: KUMARI SUSHMITA DEV:

Will the Minister of POWER be pleased to state:

(a) whether  several  Chinese  companies  are  gearing  up  to  participate  in the  bids  invited  by  Union  Government  and  State  sector  utilities  for  power transmission sector across the country;

(b) if so, the details of the bids invited by the Union Government and State sector power utilities during the last three years and the current year, yearwise;

(c) the grounds on which the Government and State sector power utilities have invited bids from foreign companies for power transmission sector;

(d) whether  indigenous  trade  bodies/  manufacturers  associations  have raised  concern  over  the  entry  of  foreign  companies  in  country's  power transmission sector, particularly companies from China; and

(e) if so, the facts and details thereof and the reaction of the Government in this regard?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) to (e) : A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  STARRED QUESTION NO.476 TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON  06.04.2017 REGARDING BIDS FOR POWER TRANSMISSION SECTOR.

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- (a) : Yes,  Madam.    Chinese  companies  or  its  subsidiaries  are participating in the bids invited by Bid Process Coordinators (BPCs) [RECTPCL  and  PFCCL] for development of various Inter State Transmission Schemes in the country.
- (b) : The  details  of  bids  invited    for  Inter  State  Transmission Schemes  during  the  last  three  financial  years  and  the  current financial year, along with details of Chinese participation in the bids, are furnished at Annexure.
- (c) : The  bidding  conducted  by  BPCs  are  based  on  the  'Tariff Based  Competitive  Bidding  Guidelines  for  Transmission  Service', 'Guidelines for Encouraging Competition in Development of Transmission  Projects'  ('the  Guidelines')  and  the  Standard  Bidding Documents notified by Ministry of Power, Government of India (GoI) for procurement of transmission services through tariff based competitive bidding process. REC Transmission Projects Ltd. (RECTPCL) and PFC Consulting Limited (PFCCL) have been appointed as the BPCs by the Government.

As  per  provision  9.2  of  Tariff  Based  Competitive  Bidding Guidelines for Transmission Service, the bidding shall necessarily be by  way  of  International  Competitive  Bidding  (ICB).  Further,  as  per extant policy, Foreign Direct Investment (FDI) up to 100% is permitted in  the  power  sector.  Accordingly,  any  foreign  power  company  can participate  in  the  international  competitive  bids  and  enter  power sector through FDI route.

In  view of the above provisions, bids are invited by BPCs through ICB route.

- (d) & (e) :  Yes, Madam, indigenous trade bodies/manufacturers associations have raised concern over the entry of foreign companies in  country's power transmission sector, particularly companies from China.

A  Committee  has  been  constituted  by  Ministry  of  Power, Government of India to look at the issues raised.

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ANNEXURE  REFERRED  TO  IN  PART  (b)  OF  THE  STATEMENT  LAID  IN  REPLY  TO STARRED QUESTION NO. 476 TO BE ANSWERED IN THE LOK SABHA ON 06.04.2017 REGARDING BIDS FOR POWER TRANSMISSION SECTOR.

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| Financial Year   | BPC     | Name of the Transmission Project                                                                                                                                                             | Name of the participating Chinese company or its subsidiaries   | Project awarded to Chinese Company?   |
|------------------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|---------------------------------------|
| 2013-14          | RECTPCL | Northern Region System Strengthening Scheme, NRSS-XXIX                                                                                                                                       | Nil                                                             | NA                                    |
| 2013-14          | RECTPCL | Transmission System for Northern Region System Strengthening Scheme, NRSS- XXXI (Part-A)                                                                                                     | Nil                                                             | NA                                    |
| 2013-14          | RECTPCL | Transmission System for Northern Region System Strengthening Scheme, NRSS- XXXI (Part-B)                                                                                                     | Nil                                                             | NA                                    |
| 2014-15          | PFCCL   | ATS for Tanda Expansion TPS (2x660 MW)                                                                                                                                                       | Nil                                                             | NA                                    |
| 2014-15          | PFCCL   | System Strengthening for IPPs in Chhattisgarh and other generation projects in Western Region                                                                                                | Nil                                                             | NA                                    |
| 2014-15          | PFCCL   | Additional System Strengthening for Sipat STPS                                                                                                                                               | Nil                                                             | NA                                    |
| 2014-15          | PFCCL   | Additional System Strengthening Scheme for Chhattisgarh IPPs - Part B                                                                                                                        | Nil                                                             | NA                                    |
| 2014-15          | RECTPCL | Transmission System Strengthening associated with Vindhyachal-V                                                                                                                              | CLP India Pvt. Limited                                          | NO                                    |
| 2014-15          | RECTPCL | Transmission System Associated with Gadarwara STPS (2 x 800 MW) of NTPC (Part-A)                                                                                                             | CLP India Pvt. Limited                                          | NO                                    |
| 2014-15          | RECTPCL | Transmission System Associated with Gadarwara STPS (2 x 800 MW) of NTPC (Part-B)                                                                                                             | CLP India Pvt. Limited                                          | NO                                    |
| 2014-15          | RECTPCL | Transmission System for Connectivity Lines for Maheshwaram (Hyderabad) 765/400 kV Pooling S/s                                                                                                | CLP India Pvt. Limited                                          | NO                                    |
| 2015-16          | PFCCL   | Common Transmission system for Phase - II Generation Projects in Odisha and Immediate Evacuation System for OPGC (1320 MW) Project in Odisha                                                 | Nil                                                             | NA                                    |
| 2015-16          | PFCCL   | Additional inter- Regional AC link for import into Southern Region i.e Warora - Warangal and Chilakaluripeta Hyderabad- Kurnool 765 kV link                                                  | Nil                                                             | NA                                    |
| 2015-16          | PFCCL   | Creation of new 400kV GIS Substations in Gurugram and Palwal areas as a part of ISTS                                                                                                         | Nil                                                             | NA                                    |
| 2015-16          | PFCCL   | North Eastern Region Strengthening Scheme (NERSS)-VI                                                                                                                                         | Nil                                                             | NA                                    |
| 2015-16          | RECTPCL | Transmission System for Strengthening of transmission system beyond Vemagiri                                                                                                                 | Nil                                                             | NA                                    |
| 2015-16          | RECTPCL | Transmission System Strengthening in Indian System for Transfer of Power from New HEPs in Bhutan                                                                                             | Nil                                                             | NA                                    |
| 2015-16          | RECTPCL | Transmission System for Immediate evacuation for North Karanpura (3x660MW) generation project of NTPC alongwith creation of 400/220 kV sub-station at Dhanbad - Proposal of JUSNL (ERSS-XIX) | Nil                                                             | NA                                    |
| 2015-16          | RECTPCL | Transmission System for "System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babai (RRVPNL)                                      | Nil                                                             | NA                                    |
| 2015-16          | RECTPCL | Transmission System for NER System Strengthening Scheme-II (Part-B) and V                                                                                                                    | Nil                                                             | NA                                    |
| 2015-16          | RECTPCL | Transmission System Strengthening in WR associated with Khargone TPP (1320 MW)                                                                                                               | Nil                                                             | NA                                    |
| 2015-16          | RECTPCL | Transmission system for Phase-I generation projects in Arunachal Pradesh                                                                                                                     | Nil                                                             | NA                                    |

………..2.

|         | 765 kV System Strengthening Scheme in Eastern Region (ERSS-XVIII)                                                                | Nil                                                                                         | NA            |
|---------|----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------|
|         | Additional 400kV feed to Goa and Additional System for Power Evacuation from Generation Projects pooled at Raigarh (Tamnar) Pool | Nil                                                                                         | NA            |
|         | Connectivity and Long Term Access (LTA) to HPPCL 450 MW from Shongtong Karcham HEP                                               | Nil                                                                                         | NA            |
|         | Transmission system for Ultra Mega Solar Park in Fatehgarh, distt. Jaisalmer Rajasthan.                                          | CSGI (China Southern Power Grid International) in consortium with CLP India Pvt. Ltd.       | Under Bidding |
| 2016-17 | New WR-NR Inter regional Corridor                                                                                                | Consortium of CLP India Pvt. Ltd. and China Southern Power Grid International (HK) Co., Ltd | Under Bidding |
| 2016-17 | Eastern Region Strengthening Scheme - XXI (ERSS-XXI)                                                                             | Consortium of CLP India Pvt. Ltd. and China Southern Power Grid International (HK) Co. Ltd  | Under Bidding |

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