Power Grid Corp of India to shortly sign memoranda of understanding with Kenyan and Nigerian governments

As part of India’s growing engagement with Africa, state-run utility Power Grid Corp. of India Ltd (PGCIL) will shortly sign memoranda of understanding (MoUs) with the Kenyan and Nigerian governments.PGCIL will sign a pact with the Kenyan government in January for consulting and development of the country’s power transmission network, said S.K. Chaturvedi, chairman and managing director, PGCIL. The scope of work will include an assessment of Kenya’s grid-for-grid strengthening.

PGCIL will sign a similar MoU with Nigeria. It was invited by the African nation to re-submit proposals to obtain a management contract for the Transmission Company of Nigeria.The utility had submitted a proposal two years ago, but the Nigerian government didn’t take a decision then.

Mint had reported PGCIL’s plans on 25 October.

In another development, PGCIL is ready to sign a memorandum of association for setting up a transmission link for power from Myanmar’s 1,200MW Tamanthi hydroelectric power plant and the 642MW Shwezaye project that India proposes to set up in that country.

“The survey has been done and we are ready. It (has) now to be decided whether the project cost will be borne through a loan or a grant,” Chaturvedi said.

The initiative is a part of the Indian government’s exercise to improve diplomatic and economic ties with Myanmar, which has rich deposits of natural gas. Myanmar has natural gas reserves of 89.722 trillion cu. ft (tcf), of which 18.012 tcf is to be proven recoverable, or gas that can be easily extracted and tapped.

These projects are on the Chindwin river, the largest tributary of the Irrawaddy, Myanmar’s key commercial waterway. A transmission link with Myanmar would also help towards a power interlink of countries of the South Asian Association for Regional Cooperation (Saarc), which groups India, Pakistan, Nepal, Bhutan, Myanmar, Bangladesh, Sri Lanka, Afghanistan and the Maldives.The Saarc grid envisages meeting electricity demands and boosting economic and political ties in the region.

PGCIL’s overseas plans are a part of its strategy to expand overseas operations, as a planned separation of key power management functions will leave it with the task of setting up transmission links. But it has not been able to make much headway.

PGCIL’s last big play overseas was linked to its plans to acquire the Philippines’ power transmission network—National Transmission Corp.—in association with a local company. The company later abandoned this plan as one of its financial partners dropped out; the project was later awarded to a Chinese consortium.