Now Reading: Karnataka opens power transmission to private firms via BOOT model
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Karnataka opens power transmission to private firms via BOOT model
Karnataka Power Transmission Corporation Limited (KPTCL) has asked the State electricity regulator to issue transmission licences to two private companies for the first time under the Build, Own, Operate and Transfer (BOOT)…
The Story in Brief
Karnataka Power Transmission Corporation Limited (KPTCL) has asked the State electricity regulator to issue transmission licences to two private companies for the first time under the Build, Own, Operate and Transfer (BOOT) model. Resonia Limited and Dilip Buildcon Limited emerged as the lowest bidders for substations at Hampapura in Mandya and Mekhali in Belagavi respectively, set up as special purpose vehicles by REC Power Development and Consultancy Limited.
A senior KERC official said the process is for power transmission only, not distribution, and that Karnataka is one of the last States to adopt this model. The Tata Power Company has also been awarded the Ryapte project in Tumakuru. Public objections are invited before September 1 for the first two projects.
The Indian Opinion
The narrative that privatising power transmission inevitably leads to higher tariffs or poorer service ignores that dozens of projects in other States already operate under the BOOT model. What matters is the tariff determined through competitive bidding and the performance of the chosen companies. Watch whether the Transmission Service Agreement includes clear penalty clauses and how many objections are filed before the September 1 deadline. That will reveal if this model truly benefits Karnataka's consumers or just the private bidders.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
