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Jhajjar KT Transco Pvt.Ltd
TEECL, in consortium, was successful in bagging an award for the establishment, operation and management of a 400-KV, 100-km long transmission link connecting 24 bay sub-stations at Rohtak and Sonepat to evacuate 1,320 MW (2 x 660) from the Jhajjar Power Plant built by China Light and Power, Hong Kong. The Haryana government, for the first time in the country, introduced a pioneering PPP model with viability gap funding to select bidders on a competitive basis for a concession period of 25 years (extendable by another five years). This is a milestone which incorporates the best efficiencies of the public and private sectors in the interest of consumers. This opportunity opens up prospects of forward integration, business retrofitting and faster business growth.Of the total capital expenditure of Rs 382 cr, the government will provide a grant of Rs 94 cr while the rest has already been funded by IDFC. TEECL’s special purpose vehicle will generate an annual income of Rs. 54 crore through this business for 25 years (extendable by 10 years).
This emerging business segment is attractive from a number of perspectives:
   It entails design-build-finance-operate-transfer rights, resulting in wider revenue streams.
  The agreement is for 25 years, so this will translate into sustainable revenues.
   The Company stands to derive EPC revenues plus the annual business returns plus any increase in business value, 
       the Company can always divest (in full or part) should circumstances warrant.
   Haryana was engaged as a consultant by other states wanting to replicate this model, so by the virtue of being
      successfully engaged in Haryana, we expect to extend our presence to other states as well.
   This represents our big leap from a contractor (generally L-one) to respected partner, a milestone.
   If the country adds 100,000 MW of generation capacity across the next Plan period then a corresponding capacity on 
      the transmission side is the minimum incremental opportunity that we intend to address.