State utilities, mostly from non-BJP-ruled states, have stepped up investment in power transmission projects, offering timely payments and even performance bonus to lure big players, said Vimal Kejriwal , managing director of RPG Group’s KEC International.
KEC International accounts for almost 20% of engineering, procurement and construction (EPC) jobs awarded by the central power transmission utility Power Grid Corporation. Bigger players have shied away from projects awarded by state electricity boards (SEBs) as they were small jobs and payments were often delayed. “There was huge investment in generation but the corresponding investment had not happened in transmission. We now see states catching up with huge work coming up for bidding,” Kejriwal told ETin an interview. “Surprisingly, these are mostly non-BJP states, probably because they were not spending as much earlier and are making up for it.” He said non-BJP ruled states like Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, West Bengal, Orissa, UP and Bihar have stepped up investments in power transmission, while orders from Gujarat and Maharashtra remain muted.