Both the power transmission companies will hold equal interest in the new company, which is expected to take up projects worth INR2bn ($36m) in Odisha, reported Business Standard.
Odisha state energy secretary Pradip K Jena said that the JV would improve power connectivity and reduce disruptions in power transmission through PGCIL’s expertise and technology.
"It also means establishment of more grid stations and more back-up facilities in case of sudden power supply failure,"Jena added.
"Within seven days we will complete the procedure of registering the JV company and will apply for transmission license from OERC (Odisha Electricity Regulatory Commission)."
Odisha currently produces about 2,800MW power from thermal and hydro sources to meet its average demand of 2,700MW.
Power Grid Corporation of India CMD R N Nayak said, "The state power trading agency will get about 2,500MW power as part of its share once all the independent power producers (IPP), whose projects are in the pipeline, start generation.
OERC will work out the tarrif rates for power supply once it grants the transmission license to the joint venture.
