India to re-write rules to prevent China from building a grid
Bharati managers of the electrical grid have pushed the panic buttom scared witless of the possibility of that China may be building and controlling Bharat’s electoral supply. On previous occasions, Bharat has disqualified Chinese companies from competing — on security grounds.
The State Grid Corporation of China (SGCC) has set up base in India and wants to bid on projects allowed under Bharati rules. The SGCC is the Chinese government-owned Chinese firm — the world’s largest electrical utility and ranked seventh in the 2011 Fortune Global 500 list of the largest global companies by revenue — has already conducted a preliminary recce for a transmission link project in the country. It has also put in a bid for another corridor through the competitive bidding route.
“Current rules provide foreign players unfettered access in the strategic transmission sector. The show of interest by the China firm, however, has prompted calls for a rethink, according to government officials involved in the management of the Indian grid. Internationally, most countries do not allow foreign participation in their grid networks.”
Under the current rules Bharat allows 100% FDI. It is allowed through the automatic route in the power sector in India, including transmission. A couple of players from Spain already have a presence.
The Beijing-headquartered grid major was technically disqualified for the only this year from the Rs 1,400-crore 765-kV Vemagiri-Hyderabad package. The SGCC is also keen on outright purchase of grid operations, if sections are on offer.
With corruption rampant in Bharat, the Chinese company will certinaly grease the skids and overcome the so called security issues–soon China will be controlling large sections of the Bharati electrical grid