Transmission delays need holistic approach

I RECENTLY CAME across an article titled Transmission delays slow green push, published in The Financial Express, authored by Dhanendra Kumar, former Chairman of the Competition Commission of India, which primarily attributes transmission delays to Power Grid Corporation of India (POWERGRID).

- @ RP SINGH

The article further suggests that POWERGRID’s success in winning more than 50% of bids under the Tariff Based Competitive Bidding (TBCB) framework has overstretched its execution capacity, leading to delays in commissioning transmission projects in alignment with solar and wind generation schedules. It is also stated that solar rich states, particularly Rajasthan and Gujarat, are incurring significant financial losses running into several crores due to these delays.

It has increasingly become a customary and convenient narrative to criticise public institutions in the value chain for systemic challenges, and in this case, POWERGRID has been singled out. The power sector is intrinsically a collaborative ecosystem, where generation, transmission and distribution entities operate alongside multiple government and statutory institutions, including the Ministry of Power, MNRE, CEA, CERC, CTU and Grid India, each with clearly defined roles in planning, regulation and system operation. Challenges faced by the sector therefore need to be viewed holistically rather than being attributed to any single institution.

It is pertinent to recall that POWERGRID was among the earliest institutions to promote private participation in transmission more than three decades ago. When direct private investment did not materialise due to high costs and perceived risks, POWERGRID pioneered the joint venture model and successfully implemented transmission projects with majority private sector equity. This approach helped build confidence, capability and scale in the transmission sector and laid the foundation for today’s competitive TBCB framework.

As CMD for nearly 12 years, I steered POWERGRID during a period when the Indian power system was evolving and the high voltage transmission network was fragmented. During this phase, there was limited access to capital, technology, and skilled manpower.