PowerGrid plans African safari with large deals

Power Grid Corporation of India Ltd (PGCIL), the country's largest power transmission utility, is exploring opportunities in African countries such as Nigeria, Kenya and Niger, for execution of engineering, procurement and construction (EPC) contracts.

"Officials from Niger and Nigeria visited us recently. We have shown interest to work on an EPC basis for development of transmission systems in these two countries, apart from Kenya," chairman and managing director S K Chaturvedi told Business Standard. "Exim Bank has already issued a letter expressing their willingness for investment on behalf of PowerGrid in EPC ventures."

It will be the first time the company will take up an EPC project, if the talks succeed. However, no investment has been earmarked currently for foray into the segment. It will depend on project-to-project basis.

"Recently, a team from the World Bank was here to discuss cross-border transmission projects and had shown their keenness to help us in any other continent for similar projects," he said.

PowerGrid also plans to set up its first overseas office in Oman, to provide consultancy services. It offers consultancy services in overseas markets such as Nepal, Bangladesh, Sri Lanka, Afghanistan, Nigeria, and Bhutan among others. It is aiding Bangladesh to set up a 400 kv HVDC network.

It also plans to install transmission lines from Bangladesh border. The company owns and operates 812,136 circuit kilometres of transmission lines and transmits over 45 per cent of the total power generated in the country. It also owns 1,50,000 transmission towers across the country, with 70 per cent of them located in semi-urban and rural areas.

Last year, PowerGrid secured an engineering consultancy assignment for two 400kv GIS sub-stations and associated overhead transmission lines in Dubai from Dubai Electricity and Water Authority. In Nigeria, the company provides consultancy to Power Holding Company of Nigeria to update of telecommunication and substation automation systems specifications.

The company would also work on evacuating 1,600 Mw from a proposed hydro power project in Myanmar, being set up by state-run National Hydroelectric Power Corporation.