Working Group on Power for 12th Plan: Suggests VGF on case-to-case basis for building intra-State transmission systems for non-conventional energy sources

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India, a power starved country while bullish on capacity addition is lacking in infrastructure improvement. Funding constraints have made it difficult for transmission utilities in the state sector to build the requisite transmission infrastructure for renewable energy sources. The Working Group on Power for the 12th Plan has, in this regard, proposed that viability gap funding be provided on case to case basis for building intra-State transmission systems for renewable generation and conventional hydro stations.

  • The working group, in its report, has said that there is currently no problem of capital resources for setting up transmission facilities in the central sector.
  • However, in the state sector, some of the state transmission utilities (STUs) require financial support, especially for building the transmission systems for evacuating power from renewable energy sources such as wind, solar and small hydro.
  • It may be noted that the 12th plan envisages to add another 1,09,000 circuit kilometres (ckm) of transmission lines, 2,70,000 MVA of AC transformation capacity and 13,000 MW of HVDC systems.
  • Accordingly, the country will require a whopping Rs 1,80,000 crore (Rs 1,00,000 crore in central sector, Rs 55,000 crore in state sector and Rs 25,000 crore in private sector) to ensure that transmission of electricity is not disrupted in the near term.

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