In the matter with the CERC (Procedure, Terms and Conditions for Grant of Transmission License and other related matters) Regulations for Transmission Licence to Paradeep Transmission Ltd. – EQ
Summary:
—-
### Background and Project Details
– **Petitioner:** TP Paradeep Transmission Limited, a special purpose vehicle (SPV) created for this project, is a 100% subsidiary of Tata Power Company Limited.
– **Project:** The license is for a specific project: the “Transmission system for evacuation of power from Eastern Region Expansion Scheme-XXXIV (ERES-XXXIV)”. This is a high-voltage (765kV and 400kV) system involving new substations, transmission lines, and reactor bays in Odisha and surrounding areas. The key elements are:
– Establishment of a new 765/400 kV GIS substation at Paradeep.
– A 765 kV D/C transmission line between Angul (POWERGRID) and Paradeep.
– A 400 kV D/C line between Paradeep and Paradeep (OPTCL).
– Extensions at the existing Angul (POWERGRID) and Paradeep (OPTCL) substations.
– **Award Process:** The project was awarded through a Tariff-Based Competitive Bidding (TBCB) process. PFC Consulting Limited (PFCCL) acted as the Bid Process Coordinator (BPC). Tata Power Company Limited emerged as the successful bidder with the lowest quoted annual transmission charges of **Rs. 2,561.83 million**.
### Key Issues and Commission’s Findings
The order addresses two main issues:
**1. Cost Allocation for Bulk Consumers (Entities under Regulation 17.1(iii)):**
– The project includes transformers (ICTs) whose cost, under the GNA Regulations, must be borne by the bulk consumers (e.g., Green Hydrogen/Ammonia producers, data centers) who will draw power from the system.
– In a previous order (18.12.2025), the CERC directed CTUIL to calculate and communicate this cost to the consumers.
– **CTUIL’s Proposal:** CTUIL proposed a uniform cost of **Rs. 16 lakhs per MW** for all such consumers at various pooling stations across the country (Navinal, Kandla, Paradeep, etc.) to avoid discrimination and future disputes. It derived this figure as an average cost for 3000 MW and 4500 MW substations at the May 2025 price level.
– **CERC’s Decision:** The Commission accepted CTUIL’s proposal. It directed CTUIL to bill the concerned GNA/GNARE grantees at **Rs. 16 lakhs/MW**. The entities must pay within 30 days; failure to do so will result in the cancellation of their GNA grants.
**2. Grant of the Transmission License:**
– The CERC had previously issued a public notice inviting objections to the grant of the license, as required by law. No objections were received.
– CTUIL also recommended the grant of the license.
– The Commission found that TP Paradeep Transmission Limited met all the necessary requirements under the Electricity Act, 2003, and the Transmission Licence Regulations, 2024.
### The Order and Conditions of the License
The CERC formally granted the transmission license to TP Paradeep Transmission Limited. The license is subject to a comprehensive set of standard and project-specific conditions, including:
– **Validity:** The license is valid for a period of **25 years** from the date of issue, unless revoked earlier.
– **Project Execution:** The licensee must execute the project as per the specified technical and grid standards. The EPC contract for the work must be awarded through a competitive bidding process.
– **Compliance:** The licensee must comply with all relevant CERC regulations regarding open access, grid code, sharing of transmission charges, performance standards, and payment of license fees.
– **Prohibitions:** The licensee is prohibited from engaging in the business of trading electricity.
– **Monitoring:** CTUIL and the Central Electricity Authority (CEA) are directed to monitor the project’s execution and report any lapses to the Commission.
—-
For more information please see below link:
