Karnataka Opens Power Transmission to Private Firms Under BOOT Model

In a significant shift, Karnataka is set to open its power transmission sector to private companies for the first time under the Build, Own, Operate, and Transfer (BOOT) model. Two major projects—Hampapura Power Transmission Limited (HPTL) in Mandya district and Mekhali Power Transmission Limited (MPTL) in Belagavi—will be handed over to private firms for a specified period, pending approval from the Karnataka Electricity Regulatory Commission (KERC).

Private Firms Selected via Competitive Bidding

The Karnataka Power Transmission Corporation Limited (KPTCL) has requested KERC to issue transmission licenses to Resonia Limited and Dilip Buildcon Limited, the lowest bidders for HPTL and MPTL respectively. Both projects were established as Special Purpose Vehicles (SPVs) by REC Power Development and Consultancy Limited (RECPDCL), a subsidiary under the Ministry of Power, Government of India.

Infrastructure Details of the Projects

The HPTL project involves constructing a 400/220/33 kV substation at Hampapura and laying approximately 125 km of 220 kV double circuit transmission lines connecting Mandya’s key locations, including Nagamangala, Maddur, Tubinakere, and Huygonahalli. This aims to strengthen the 220 kV network in Mandya and ensure reliable power supply to downstream substations.

Similarly, the MPTL project will establish a 400/220/33 kV substation in Mekhali with 470 circuit kilometres of transmission lines. This includes a 320 km double circuit line linking Mekhali with Yalawar and Dhoni, and a 130 km double circuit line connecting Mekhali to Kudachi, Aques, and Mahalingapura.

Regulatory Process and Public Input

KERC has issued a public notice inviting objections or suggestions on the proposal by September 1. A senior KERC official clarified that the license pertains strictly to power transmission, not distribution. Under the BOOT model, the private companies will operate the infrastructure for a fixed period at a regulated tariff. Post this tenure, the assets will either be transferred to the State nodal agency or the contract extended based on performance.

Karnataka Joins the National Trend

This move aligns Karnataka with other States that have already embraced private participation in power transmission. According to KERC, nearly 90 similar projects have been licensed across India. Karnataka, however, is among the last States to adopt this model.

By opening its transmission sector to private players, Karnataka aims to enhance infrastructure efficiency and address regional power constraints, marking a pivotal step in its energy sector evolution.

Source: The Hindu