In a conversation with The Indian Express, the CMD of PowerGrid, R P Singh, said, ``We have started work on offering a few lines for private sector participation. There are a lot of issues to be sorted out, so the earlier we start, the better.''

Singh said that the lines were being identified on a set of parameters. The first was that they should be located in easy-to-handle terrains and not difficult terrains like the mountains. This would make life easier for the private investors. Also, the investment required in the links would be Rs 300-400 cr in each. Also the transmission links would lie in good revenue earning areas.

Singh said that PowerGrid had also startedwork on the bid documents which would set the parameters for inviting private companies to build and operate transmission lines. The entire process would take about a year, Singh said.

Once the bid documents were given out, the companies would be given about six months to put in their bids. Such a long time was required because each of the companies would like to survey the terrain separately. The survey alone would take three to four months, he said.

Offering lines for private investment is part of PowerGrid's overall strategy of expanding transmission network. The other part of its strategy is to undertake projects in the form of joint ventures. While PowerGrid will have majority stake in couple of them, it will also accept minority stake in some others. ``We are trying out different options right now. I don't know which one will be most successful, but we will learn as we go along,'' Singh said.

Legislation to bring in private sector investment in transmission was done because this area has beenneglected over the years. While investment in transmission and distribution should match the investment in generation, only a quarter has been invested in T&D over the years.

Under the new laws, while the private companies will be allowed to build and operate, the overall control of transmission will lie with Power Grid Corporation.