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News: A record Rs 64,000 crore worth of six power transmission projects for connecting green energy installations have been approved by the National Committee on Transmission (NCT) and are likely to be awarded this year through the bidding route. The Centre is expecting high interest from the private sector for these large-scale transmission projects that will connect some mega renewable energy zones (REZs) in the country with the national grid. The NCT approved these power transmission projects connecting renewable energy zones in Gujarat, Rajasthan and Maharashtra and hydropower projects in Himachal Pradesh with the national grid.
Views: The bidding for these projects will create more viability of power utility like Powergrid given lower asset capitalisation has marred the growth trajectory but at the same time it may have to compete with the private sector at the cost of RoE. On the other hand, the construction of these six projects will create strong ordering opportunities for T&D players like Kalpataru Power and KEC Intentional on the EPC side while product based companies like TRIL are also expected to see strong prospects.
Impact: Positive