Petition of the CERC (Procedure, Terms and Conditions for Grant of Transmission Licence and other related matters), Regulations to Ananthapuram II Power Transmission Ltd – EQ

Summary:

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#### 1. Objective of the Petition
The petitioner, AllPTL, sought the grant of an inter-state transmission licence under the Electricity Act, 2003. The licence is required to establish, operate, and maintain a transmission system that will evacuate power from the **3 GW Ananthapuram-II Renewable Energy Zone (REZ) in Phase II**.

#### 2. Project Background & Selection Process
– **Bid Process Coordinator (BPC):** REC Power Development and Consultancy Limited (RECPDCL) managed the competitive bidding process.
– **Bidding Guidelines:** The process was conducted in accordance with the Ministry of Power’s guidelines under **Section 63** of the Electricity Act (tariff-based competitive bidding).
– **Successful Bidder:** **Shivalaya Construction Limited** was declared the successful bidder, quoting the lowest annual transmission charges of **Rs. 3,190.00 million**.
– **Project Company:** The petitioner, Ananthapuram II Power Transmission Limited (AllPTL), is the Special Purpose Vehicle (SPV) incorporated to execute the project.

#### 3. Scope of the Project (Transmission Elements)
The licence allows AllPTL to build the following inter-state transmission system on a **Build, Own, Operate and Transfer (BOOT)** basis. Key elements include:

– **Substation Augmentations:**
– Augmentation of Ananthapuram-II Pooling Station with 400/220 kV, 500 MVA ICTs and associated bays.
– Establishment of a new **3×1500 MVA, 765/400 kV CN’Halli Station** with bus reactors.
– **Transmission Lines:**
– **Ananthapuram-II PS – CN’Halli 765 kV D/c line** with switchable line reactors.
– LILO (Loop-In-Loop-Out) of existing 400 kV lines at CN’Halli.
– **Connectivity:** Includes bays for terminating dedicated transmission lines from RE generation projects.
– **Scheduled COD:** The first element is scheduled for commissioning by **October 17, 2027** (24 months from the effective date).

#### 4. Regulatory Process & Public Consultation
– **Prima Facie View:** On December 31, 2025, CERC issued a prima facie order stating that AllPTL appeared to satisfy the conditions for a licence and directed the publication of a public notice.
– **Public Notice:** Notices were published in ‘The Hindu’ (English) and ‘Hindustan’ (Hindi) on January 7, 2026, inviting suggestions or objections.
– **Stakeholder Feedback:** No objections or suggestions were received from the public. The Central Transmission Utility of India Limited (CTUIL) formally recommended the grant of the licence.

#### 5. Key Business Terms & Conditions of the Licence
The licence is granted subject to the following core conditions:

– **Licence Duration:** The licence is valid for **25 years** from the date of issue.
– **Tariff:** The transmission charges will be as discovered in the competitive bid (**Rs. 3,190 million per annum**), governed by the Transmission Service Agreement (TSA).
– **Scope Restriction:** The licensee is strictly prohibited from engaging in the business of electricity trading.
– **Open Access:** Must provide non-discriminatory open access to its transmission system as per CERC regulations.
– **Project Execution:**
– The EPC contract for the work must be awarded through a competitive bidding process.
– The project must be executed as per the technical standards of the Central Electricity Authority (CEA).
– The licensee must meet the Scheduled Commercial Operation Date (SCOD) as per the bidding documents.
– **Compliance:** The licensee must adhere to all applicable CERC regulations, including the Grid Code, Sharing Regulations, Payment of Fees Regulations, and Standard of Performance Regulations.
– **Reporting:** Must submit required reports to the Commission, CTUIL, and CEA.

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