Power Grid Corporation of India and the state government of Uttar Pradesh Power Transmission Corporation will form an equal joint venture company to strengthen the intra-state transmission network.
Quoting officials familiar with the development, a Moneycontrol report said the Union Power Ministry and NITI Aayog are facilitating the joint venture, that is expected to come to fruition by the end of the ongoing financial year.
“The joint venture will be on the same lines as that with Bihar. A JV helps the state by reducing its own capital commitment, getting top expertise from a company like PGCIL and securing loans from multilateral agencies like World Bank and Asian Development Bank as PGCIL enjoys high credit rating,” an official reportedly said.
Apart from Bihar, PGCIL has a similar joint venture in Odisha. As far as the UP project is concerned, the joint venture company will have to secure a transmission licence from the Uttar Pradesh Electricity Regulatory Commission.
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