In the matter for the adoption of Transmission Charges with Transmission System being established by POWERGRID Mandsaur Augmentation Transmission Limited – EQ

Summary:

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### Key Business and Regulatory Points

#### 1. Core Objective and Legal Framework
– **Purpose of the Petition:** The Petitioner sought the adoption of transmission charges for a new ISTS project by the Central Electricity Regulatory Commission (CERC) under **Section 63 of the Electricity Act, 2003**.
– **Legal Basis (Section 63):** This section mandates that the Appropriate Commission (CERC) shall adopt the tariff if it has been determined through a transparent competitive bidding process in accordance with guidelines issued by the Central Government. This is distinct from the cost-plus tariff determination under Section 62.

#### 2. The Project: Scope and Significance
– **Project Name:** Augmentation of transformation capacity and Implementation of line bays at Mandsaur S/s for RE Interconnection.
– **Objective:** To strengthen the transmission network at the Mandsaur substation to interconnect multiple renewable energy projects (solar and hybrid) in the region. This is crucial for evacuating power from RE projects to the grid.
– **Scope of Work:** The project involves several key elements, all scheduled for commissioning between March 2027 and March 2028, including:
– Creating new 400kV and 765kV bus sections.
– Augmenting transformation capacity with new ICTs (e.g., 1x1500MVA, 1x500MVA).
– Installing new line bays to interconnect specific projects from developers like Waaree, NTPC Renewable Energy, and TEQ Green Power.
– **Project Cost:** Estimated at **Rs. 3076.10 Million**.

#### 3. The Bidding Process and Key Players
– **Nodal Agency:** The Bid Process Coordinator (BPC) was **PFC Consulting Limited (PFCCL)** , notified by the Ministry of Power.
– **SPV:** A Special Purpose Vehicle (SPV), initially named ‘Mandsaur I RE Transmission Limited’, was incorporated as a wholly owned subsidiary of PFCCL. The successful bidder was required to acquire this SPV.
– **Bidding Guidelines:** The process strictly followed the “Tariff based Competitive bidding Guidelines for Transmission Service” issued by the Ministry of Power in August 2021.
– **Process Flow:**
1. **Request for Proposal (RfP):** Published in March 2025.
2. **Bid Submission & Opening:** Three bidders submitted offers. Technical bids were opened on 1.9.2025, and the initial price offers were opened on 10.9.2025.
3. **Initial Results:** Power Grid Corporation of India Limited (PGCIL) was the lowest initial bidder at Rs. 465.35 million per annum.
4. **e-Reverse Auction (e-RA):** A key feature of the process. Two qualified bidders participated in 16 rounds of e-RA on 11.9.2025.
5. **Final Outcome:** PGCIL emerged as the successful bidder with a final quoted transmission charge of **Rs. 446.99 million per annum**. Techno Electric & Engineering Company was second at Rs. 448.12 million.
6. **Letter of Intent (LoI):** Issued to PGCIL on 19.9.2025.
7. **SPV Acquisition:** PGCIL acquired 100% equity of the SPV on 8.10.2025, after which the SPV was renamed ‘POWERGRID Mandsaur Augmentation Transmission Limited’ (the Petitioner).

#### 4. Evaluation and Certification
– **Bid Evaluation Committee (BEC):** A multi-stakeholder committee was constituted (including members from CEA, WRPCM, MPPTCL, etc.) to oversee the process.
– **BEC Certification:** The BEC certified that:
– The entire bid process was conducted in accordance with the Ministry of Power Guidelines.
– PGCIL was the successful bidder.
– The quoted tariff (**Rs. 446.99 million per annum**) is **~21.39% lower** than the levelized tariff benchmark calculated as per CERC norms (Rs. 568.60 million per annum), confirming it is in line with market prices and acceptable.

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