Patna: Bihar is gearing up to enhance its power transmission capacity to 12,000MW from 7,500MW by the end of 2021-22.

Similarly, the state, which has witnessed a major change in the power sector in the past four-five years, will launch other schemes to enhance its power distribution capacity from 5,000MW to around 7,000MW in the said period.

The government has already approved plans of power companies in this regard and now, those will issue bids to select agencies that will carry out these works.

In its cabinet meeting held on November 7, the state government had approved projects worth Rs 7,929 crore for this purpose and had also given consent to give 20 per cent of the required fund in instalments to power companies, while the power companies have to raise the remaining amount through loan for which the state government will act as guarantor.

Some important works that will be carried out using these funds are setting up of transmission system attached to grid sub-stations in Gaya, Sitamarhi and Saharsa districts and strengthening of transmission lines in the Patna region, enhancing distribution lines and replacing those wherever required.

While the transmission-related work will be done under the overall supervision of Bihar State Power Distribution Company Limited, North Bihar Power Distribution Company Limited and South Bihar Power Distribution Company Limited will oversee those related to distribution according to the area of work.

"As far as loan is concerned, we are holding negotiations with Asian Development Bank (ADB), National Bank for Agriculture and Rural Development (Nabard) and Rural Electrification Corporation (REC) and will finalise the deal with the agency which offers us the loan on best terms," a senior official of Bihar State Power Holding Company Limited told The Telegraph.

He said the negotiation for the loan terms will not delay the execution of projects, as the power companies will start the work using the equity fund the state provided.

"In fact, we will float tenders for selection of agencies within a fortnight," he added.

Justifying the need of the proposed project, the official said the state will need around 6,000MW of power four years down the line and hence, the distribution lines needed to be augmented keeping the future needs in mind.

There appears logic in the claim of the official, as Bihar government is working on a project, which entails power connection to every household by the end of 2018. This will lead to addition of at least 40 lakh additional connections. Also work on setting up separate feeders for agriculture related works is underway. The addition new customers and other services are bound to lead to increase in power demand. The state's peak demand hovers around 4,300MW.

On having higher capacity of transmission lines than the actual needs, the official said the transmission capacity is always kept much higher than the consumption, as more than one line of transmission is needed for ensuring uninterrupted power supply.

While the state has a transmission capacity of 7,500MW of power when the state's demand peaks to 4,300MW, after completion of the projects, the transmission capacity will be enhanced to around 12,000MW against the projected peak demand of around 6,000MW of power in Bihar.