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Centre plans Rs 11,000 cr power transmission project in Ladakh

Various options are being discussed to facilitate the power transmission project

Central government, Power transmission link, Solar and wind energy projects, Ladakh, Grid connectivity problems, Green energy projects, Leh and Kargil districts, Viability gap funding, Public private partnership, Rann of Kutch, Power Grid Corporation of India, Hydropower projects, Jammu and Kashmir State Power Development Corporation, NHPC

The Central government is planning to set up 900 km power transmission link that will help large solar and wind energy projects in Ladakh supply electricity across the country. The project is a part of the Central government’s strategy to develop the Union Territory of Ladakh.

The project entailing an investment of Rs 11,000 crore seeks to resolve grid connectivity problems faced by the region. This is also expected to attract investments for setting up green energy projects in the cold desert region.

The power link will initially transfer around 2,500 MW and be developed in Phase-III of the green energy corridors to help tap Ladakh’s solar energy potential of 40 GW. The strategic project assumes significance as it will help supply power to the people of Leh and Kargil districts, besides defence establishments, during harsh winters and also help transmit surplus power to the rest of the country in summers.

Various options are being discussed to facilitate the power transmission project. It can be either a viability gap funding (VGF) project or a public private partnership (PPP) project or a mix of both. It may also have a generation component. VGF is a grant and at the centre of India’s infrastructure-creation plans through PPPs.

Ladakh, Thar, Rann of Kutch, Lahaul and Spiti have potential to generate 315.7 GW solar and wind power, and will require investments of Rs 43.7 trillion over the next 30 years to 2050. The government is also exploring the feasibility of setting up storage projects in Leh-Ladakh. Work on the national grid is on with green energy corridors being set up in two phases with a total investment of Rs 47,000 crore.

The Power Grid Corporation of India (POWERGRID) is setting up transmission corridors to supply power from solar parks to the national grid. The government is also trying to divide the electricity generated from hydropower projects by Jammu and Kashmir State Power Development Corporation and NHPC between the two Union Territories.

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June 2020
10 Jun 2020