In Short : The Indian government has drafted new guidelines that will enable Public Sector Undertakings (PSUs) to compete in power transmission projects. This move aims to increase competition and efficiency in the sector by allowing PSUs to bid alongside private players. The guidelines are expected to enhance transparency, promote investment, and improve the overall quality of power transmission infrastructure. This could also help in addressing any existing gaps in the power transmission network. If you have any specific aspects of the guidelines you’re interested in, let me know!
In Detail : New Delhi: In a significant policy shift, the government has proposed draft guidelines that will allow public sector undertakings (PSUs) to bid for power transmission projects through a tariff-based competitive bidding (TBCB) process. The move aims to increase competition and efficiency in the power transmission sector, which is crucial to meet India’s growing energy demand.
The draft guidelines propose that central public sector enterprises (CPSEs), state public sector enterprises (SPSUs) and joint ventures comprising them be allowed to bid for transmission projects. This marks a departure from the past, where bidding for transmission projects was dominated mainly by private sector entities.
The guidelines emphasize the importance of maintaining a level playing field, with PSUs having to adhere to the same conditions that apply to private sector participants in the tender process. The government has set out detailed conditions to ensure that public sector involvement does not lead to any conflict of interest, preserving the integrity of the tender framework.
The move is part of the government’s broader strategy to strengthen the transmission sector, which is critical for integrating renewable energy into the national grid. India’s ambitious renewable energy targets have created an urgent need for robust and reliable transmission infrastructure. The inclusion of PSUs in the TBCB process is expected to accelerate the development of such infrastructure by leveraging the expertise and resources of public sector entities.
The draft guidelines are currently open for stakeholder consultation and the Ministry of Energy invites industry stakeholders to submit their views and comments. Input received during the consultation process will be considered before the guidelines are finalized.
The proposed PSU participation in the TBCB process is seen as a strategic move to address the growing complexity and scale of transmission projects in India. As the country’s power sector evolves, the need for large-scale and advanced transmission solutions is growing. Public sector entities, with their considerable technical expertise and resources, are likely to play a key role in addressing these challenges.
The government’s decision to involve PSUs in the competitive bidding process is also aimed at promoting greater competition in the transmission sector, which is expected to result in more efficient and cost-effective project implementation. This policy shift is likely to have a significant impact on the future development of power transmission infrastructure in India, especially in the context of the country’s renewable energy ambitions.
The draft guidelines are a key step towards integrating the strengths of public sector enterprises with the competitive dynamics of the private sector, thereby creating a more resilient and efficient energy transmission network across the country.
