Central transmission utility PowerGrid Corp would invest Rs 58,000 crore for setting up network to facilitate evacuation of electricity from power surplus states to others.
The company would execute nine high-capacity transmission corridors, which would transfer power from the hydro power projects in the North-east and thermal power projects in the Northern region to power deficient states.
"We would construct nine high capacity transmission corridors in five years from now," CMD PowerGrid Corp SK Chaturvedi told PTI.
"It requires an investment of Rs 58,000 crore and would be funded through internal accruals, World Bank and Asian Development Bank loans and partly from the proceeds of the FPO," Chaturvedi said.
The transfer of electricity would take place between Jharkhand, Chhattisgarh, Sikkim, Andhra Pradesh and Tamil Nadu.
"The transmission network includes two corridors in the East, two in the west," he said, adding that the company has received the necessary approvals from power regulator Central Electricity Regulatory Commission (CERC).
However, the quantum of power to be evacuated through the network cannot be ascertained now as it includes electricity from both operational as well as under-construction projects.
Meanwhile, PowerGrid is gearing up for its follow-on public offer through which it expects to raise 10 per cent fresh equity. The government is likely to divest 10 per cent stake in the navratna PSU.
The company plans to invest Rs 55,000 core for adding 37,000 MW of inter-regional electricity transmission capacity in the country during the 11th Five-Year Plan (2007-12).
It also targets to augment transmission capacity to 23,400 MW in the current fiscal from 19,800 MW at present.