'Award more transmission projects via bids'
The Hindu Business Line , Jun 09, 2017
The prevalence of the nomination regime for awarding power transmission projects has irked the Federation of Indian Chambers of Commerce and Industry (FICCI). In a letter to the Ministry of Power, FICCI has noted that just 19 per cent of the investment in the power transmission sector from 2011 has come through projects that were bid out.
In those, Empowered Committee meetings have been infrequent and the number of projects cleared for implementation through the tariff based competitive bid route are limited, said FICCI. In the latest meeting of the EC in July 2016, only nine projects followed the bidding route.
The letter also noted that the growth rate in the power generation sector has been 11 per cent over the last six years, while the transmission sector has grown just 6 per cent. FICCI also claimed there is a direct link between private ownership and increase in investment.