Petition of the Electricity Act for Adoption of transmission charges with Transmission System being established by Mundra I Transmission Limited – EQ
Summary:
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### **Subject of the Petition**
MITL filed under **Section 63 of the Electricity Act, 2003**, seeking:
1. **Adoption of transmission charges** discovered through a tariff-based competitive bidding process for a Green Hydrogen/Ammonia transmission project.
2. Inclusion of these charges in the **Point of Connection (POC) pool** under CERC regulations.
3. General prayers for condonation of errors and other relief.
**Project**:
> **“Transmission System for supply of power to Green Hydrogen/Ammonia manufacturing potential in Mundra area of Gujarat under Phase-I: Part B1 scheme (3 GW at Navinal S/s)”**
> **Mode**: Build, Own, Operate, and Transfer (BOOT) basis.
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### **Bidding Process & Outcome**
– **Bid Process Coordinator (BPC)**: PFC Consulting Limited (PFCCL).
– **Bidders**: Three entities submitted bids – PGCIL, Sterlite Grid 32 Limited, and Adani Energy Solutions Limited.
– **Bidding Outcome**:
– Initial Lowest Price Offer: **₹3,700 million per annum**.
– After e-reverse auction: **Adani Energy Solutions Limited** emerged as the successful bidder with a final transmission charge of **₹3,081.73 million per annum**.
– **Letter of Intent (LoI)** issued to Adani on **6 February 2025**.
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### **Scope of the Transmission Project**
Key components (with Scheduled COD = 36 months from SPV Transfer date of 20 March 2028):
1. **Augmentation of Navinal (Mundra) Substation**: 2×1500 MVA ICTs, bus reactors, and creation of new bus sections.
2. **Navinal (Mundra) – Bhuj 765 kV D/C Line**.
3. **Bay arrangements** at both ends of the line.
4. **Installation of ±300 MVA STATCOM systems** with MSC/MSR at 400 kV bus sections.
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### **Commission’s Key Observations & Decision**
#### **Critical Issue – Lack of Demonstrated Need**
– In a related petition (**No. 441/TL/2025**) for grant of transmission license, the CERC had earlier (Order dated 30.10.2025) observed that:
– There is **no visibility of utilization** for this transmission scheme.
– It may lead to a **redundant transmission asset**.
– It **does not fulfil the requirement under Section 38(2)(c)** of the Electricity Act, which mandates development of an efficient, coordinated, and economical inter-state transmission system.
– The Commission referred the proposal back to the **National Committee on Transmission (NCT)** for reconsideration based on likely utilization and consumer impact.
#### **Order in the Present Petition (440/AT/2025)**
Given the above, the Commission held:
> **The question of adopting transmission charges does not arise at this stage.**
– The petition is **disposed of**.
– **Liberty is granted** to MITL to approach the Commission again for adoption of charges **only after the NCT takes a final decision on the necessity and viability of the transmission scheme**.
– The filing fee paid for this petition shall be **adjusted against any future adoption petition** for the same scheme.
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