The company would build transmission lines in order to link thermal plants with a minimum capacity of around 500MW and hydroelectric units with a capacity of 250MW, to the network, stated Pramod Deo, chairman of the Central Electricity Regulatory Commission.

The expected cost for constructing a transmission line of One kilometer (0.6 mile) would be around $104,460, informed Deo.

Deo, said: “Hydroelectric projects will benefit more as their plants are located in far-away places.”

Power Grid transmitts around 45% of the electricity generated in India. The company, within five years to 2012, intends to double the length of its transmission lines to 120,000 kilometers.

According to the web site of the Power Ministry, by 2012, the national transmission network is expected to have a capacity to transfer 37,700MW of electricity.