Question : PRIVATISATION OF SEBS

(a) whether the Union Government have been seriously considering privatisation of power grid transmission lines and also those SEBs which are not working satisfactorily; and

(b) if so, the details of such power grid transmission lines and SEBs?

THE MINISTER OF POWER ( SHRI SURESH P. PRABHU )

(a) & (b): A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) & (b) OF STARRED QUESTION NO. 410 TO BE ANSWERED IN THE LOK SABHA ON 18.12.2000 REGARDING PRIVATISATION OF SEBs.

(a) & (b): POWERGRID was established in 1989 with the mission to establish and operate Regional and National Power Grids to facilitate transfer of power within and across the regions with reliability, security and economy on sound commercial principles. POWERGRID has been declared as the Central Transmission Utility (CTU) in accordance with Section 27A of the Indian Electricity Act, 1910. POWERGRID, as CTU is responsible for undertaking transmission of energy through inter-state transmission system and evacuation of power from all Central Power Stations and delivery of allocated power to constituent states.

There is no proposal to privatise existing transmission lines of POWERGRID. In order to augment the capability of POWERGRID to undertake investment in new transmission lines/inter-regional inter-connectors, it is proposed to use the legal framework for securing private sector investment in the construction of new transmission lines/inter-connections.

POWERGRID has identified the transmission lines under Tala Transmission System for evacuation of Power from Tala Hydro-electric Project in Bhutan (1020 MW) and other generation projects likely to be commissioned in the time frame 2004/2005 in the North-Eastern/Eastern Regions. The project is proposed to be executed under Joint Venture arrangement with private participation.

The decision to privatise transmission lines in the State Sector has to be taken by the concerned State Government after consulting the State Transmission Utility (State Electricity Board/Successor Entity) responsible for transmission within the state.