Karnataka Moves to Open Power Transmission to Private Companies via BOOT Model
Karnataka is moving toward private sector participation in its power transmission infrastructure for the first time by handing over two major substation projects under the Build, Own, Operate and Transfer (BOOT) framework, subject to regulatory approval.
What Happened
The Karnataka Power Transmission Corporation Limited (KPTCL) has formally recommended that the Karnataka Electricity Regulatory Commission (KERC) grant transmission licences under Section 14 of the Electricity Act 2003 to two private firms. The projects involve Hampapura Power Transmission Limited (HPTL) in Mandya district and Mekhali Power Transmission Limited (MPTL) in Belagavi.
Both entities were created as Special Purpose Vehicles (SPVs) by REC Power Development and Consultancy Limited (RECPDCL) under the Union Ministry of Power for intra-state power transmission. Following a Tariff Based Competitive Bidding (TBCB) process, Resonia Limited emerged as the lowest bidder for HPTL, while Dilip Buildcon Limited emerged as the lowest bidder for MPTL. The Ministry of Power approved the transfer of shares held by RECPDCL to these respective private firms, and a Transmission Service Agreement has been signed between HPTL and KPTCL.
Key Highlights
- First for the State: This marks the first time Karnataka is facilitating private participation in power transmission via the BOOT model.
- HPTL Project Details: Includes establishing a 400/220/33 kV substation at Hampapura in Mandya along with approximately 125 km of 220 kV double circuit transmission lines connecting Nagamangala, Maddur, Tubinakere, and Huygonahalli.
- MPTL Project Details: Involves a 400/220/33 kV substation at Mekhali in Belagavi with around 470 circuit kilometres of associated lines, including a 320 km double circuit line to Yalawar and Dhoni, and a 130 km 220 kV double circuit line connecting Kudachi, Aques, and Mahalingapura.
- BOOT Framework: Private operators will manage the transmission network for a set tenure and tariff. After the designated term, the assets will either transfer to the state nodal agency or continue under contract based on performance.
- National Context: According to a KERC official, Karnataka is among the last states to adopt this model, while other states have already licensed roughly 90 power transmission projects.
Why This Matters
The infrastructure planned under HPTL is designed to address existing constraints within the 220 kV transmission network in Mandya and secure a reliable power supply to downstream 220 kV substations. Furthermore, regulator officials clarify that these licences are strictly for power transmission and should not be confused with power distribution licences.
What to Watch Next
The KERC has issued a public notice inviting objections and suggestions regarding the licence issuance until September 1. Following the review of public feedback and regulatory procedures, the commission will decide on granting the transmission licences to Resonia Limited and Dilip Buildcon Limited.
Frequently Asked Questions
What are the two power transmission projects involved?
The projects are Hampapura Power Transmission Limited (HPTL) in Mandya district and Mekhali Power Transmission Limited (MPTL) in Belagavi.
Which private companies won the bids for these projects?
Resonia Limited emerged as the lowest bidder for HPTL, and Dilip Buildcon Limited was the lowest bidder for MPTL through a tariff-based competitive bidding process.
Does this licence involve electricity distribution to end consumers?
No. A senior KERC official clarified that the licence is exclusively for power transmission under the BOOT model and is not a power distribution licence.
Source: Based on reporting from The Hindu.