Government proposes PSUs to bid for power transmission projects
The government has proposed new draft guidelines to allow public sector undertakings (PSUs) to bid for power transmission projects through a tariff-based competitive bidding (TBCB) process. This marks a shift from the previous approach, where private sector entities primarily dominated the bidding. The initiative aims to boost competition and enhance efficiency in the power transmission sector, which is essential to meet India’s increasing energy needs.
The draft guidelines suggest that central public sector enterprises (CPSEs), state public sector enterprises (SPSUs), and their joint ventures be eligible to bid for transmission projects. To maintain fairness, PSUs will be required to follow the same rules as private sector bidders, ensuring no conflict of interest. This move is expected to leverage the expertise and resources of public sector entities, thereby speeding up the development of robust transmission infrastructure, which is critical for integrating renewable energy into the national grid.
The government is seeking feedback on these draft guidelines, inviting industry stakeholders to submit their views. This consultation process will inform the finalization of the guidelines.
This policy shift is aimed at addressing the increasing complexity and scale of transmission projects needed to support India’s evolving power sector. By involving PSUs in the competitive bidding process, the government hopes to foster greater competition, leading to more efficient and cost-effective project implementation.