JSW Energy, the power arm of the Sajjan Jindal-controlled JSW Group, is targeting a transmission lines network of over 1,000 circuit km (ckm) in the next three years.

S S Rao, chief executive officer, JSW Energy, said the company is betting big on its transmission lines business. "We will be spending close to Rs 2,000 crore in the next three years," he said. Rao said in the next few years, the company will bid for all major tenders for 400 kV and 765 kV transmission lines to achieve this target.

Jaigad PowerTransco Ltd (JPTL), a joint venture between JSW Energy and Maharashtra's transmission company MahaTransco, was recently awarded a licence for 400 kV transmission systems in the state.

JPTL was formed primarily to evacuate power from the 1,200-mw Jaigad power project being developed by JSW Energy. The licence authorises JPTL to establish, operate and transmit electricity from its proposed 400-kV transmission evacuation system in Maharashtra.

In a press statement, the company said licence is the first of its kind issued under the Electricity Act, 2003, to a private company under the public-private partnership (PPP) model.

The licence came into effect on February 8 and is valid for 25 years. Rao said the company is looking at several more joint ventures and also independent development of transmission network as and when they come up for bidding. He said most of the upcoming orders are expected to be in the range of Rs 200 crore and Rs 250 crore and will be through the international competitive bidding route.

The company, which is into all verticals of power business except distribution, looks at transmission business as its second biggest growth opportunity after power generation. In power generation, JSW Energy is targeting a capacity of 13,270 mw against the current 260 mw at Bellary, Karnataka, by the end of the government of India's Eleventh Five-Year Plan, which ends March 2012.

Promit Mukherjee/ DNA-Daily News & Analysis Source: 3D Syndication