- 31 Mar 2023
- ICICIdirect Research
GOVERNMENT TO INVITE BIDS FOR POWER TRANSMISSION PROJECTS
News: The industry is expecting the government to invite bids for power transmission infrastructure projects worth Rs 1.50 lakh crore in the next 18 months. In December, the government had launched a plan with investment opportunities of about Rs 2.44 lakh crore for building a transmission system for evacuating 500 gigawatts (GW) of non-fossil based energy by 2030. The industry expects the government to invite bids under tariff based competitive bidding (TBCB) for power transmission infrastructure projects as it accelerates creation of new power lines and green energy corridors to integrate rising share of renewable power
Views: The viability on the projects will increase business projects for both power transmission utilities like Powergrid which has been successful in bagging projects under the TBCB route. But at the same time, competitive intensity will be watched out for given it may impact equity IRR if the intensity is high. On the other hand, it will create order inflow opportunities for companies in T&D equipment and EPC space. Companies under our coverage like KEC, Kalpataru power, ABB, Siemens and TRIL are likely to benefit.
Impact: Positive