Petition with CERC (Procedure, Terms and Conditions for Grant of Transmission License and other related matters) Regulation for Transmission system for Regulated Tariff Mechanism route – EQ

Summary:

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### 1. Case Overview

* **Petition No.:** 1029/TL/2025
* **Petitioner:** Navinal Transmission Limited (NNTL)
* **Respondents:** Central Transmission Utility of India Limited (CTUIL) & Others.
* **Subject:** Application for grant of a separate Transmission License for a transmission system at Navinal (Mundra) (GIS) under the **Regulated Tariff Mechanism (RTM) route**.
* **Date of Hearing:** January 21, 2026.
* **Project Award:** The project was awarded to NNTL by CTUIL via letter dated August 4, 2025.
* **Estimated Project Cost:** **Rs. 105.09 Crore** (approx. USD 12 million).
* **Purpose:** To provide connectivity to RE applicant(s), specifically mentioning the evacuation of **300 MW of Wind power from AWEK3L**.

### 2. Summary of Proceedings

* **Petitioner’s Submission:** NNTL’s representative confirmed that the company has complied with all necessary requirements under the Transmission Licence Regulations, 2024, and has filed a compliance affidavit.
* **Commission’s Decision:** The CERC **admitted the petition** but has raised several specific questions and directed both the Petitioner and CTUIL to provide detailed information before a final order can be passed.

### 3. Key Directives from the Commission

The CERC has identified a discrepancy between the estimated project cost and the amount approved by CTUIL. It has asked both parties to provide justification and detailed information within two weeks.

| Directed To | Required Information | Business/Regulatory Relevance |
| :— | :— | :— |
| **NNTL (Petitioner)** | 1. Copy of the **Investment Approval** for the scheme.<br>2. Detailed **item-wise estimation** of the project cost.<br>3. Justification for any increase/decrease regarding the Rs. 105.09 Cr. estimate. | To verify the reasonableness of the project cost and ensure proper financial approval is in place. |
| **CTUIL (Respondent)** | 1. **Cost Rationale:** Why is the Augmentation Transmission Scheme (ATS) value considered only **Rs. 83.06 Cr.** when the total project estimate is Rs. 105.09 Cr.?<br>2. **Connectivity Details:** Details of connectivity/GNA/GNARE granted at Navinal S/s, including start dates.<br>3. **Planning Rationale:** Why was augmentation planned at the **220 kV level** when ~3000 MVA of transformation capacity was available at the **400 kV level** (without N-1 criterion) when the connectivity application was made?<br>4. **Cost Deposit Status:** Current status of the cost to be deposited by the GNA/GNARE grantees at Navinal S/s, as per a prior CERC order (dated 19.11.2025 in Petition 426/TL/2025).<br>5. Detailed item-wise cost estimation. | To justify the technical and financial planning of the project, ensure transparency in cost allocation, and confirm that other involved entities are fulfilling their financial obligations. |

### 4. Strategic Takeaways

* **RTM Route Project:** This project is being developed under the Regulated Tariff Mechanism, which typically provides a fixed, regulated return on equity, making it attractive for investors seeking stable, long-term revenue.
* **Cost Scrutiny is High:** The CERC’s detailed questions highlight its rigorous approach to scrutinizing project costs, especially when there are discrepancies between the total project cost and the value of the Augmentation Transmission Scheme (ATS). The petitioner must be prepared to justify every major cost component.
* **Technical Justification Required:** The question regarding the choice of 220 kV augmentation over utilizing existing 400 kV capacity suggests the CERC wants to ensure that the planning is efficient and avoids unnecessary duplication of assets.
* **Inter-connected Approvals:** The directive regarding deposits from GNA/GNARE grantees indicates that the license’s financial viability is dependent on contributions from the renewable energy generators who will use the system. Their compliance is being monitored.

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