In the matter with the CERC (Procedure, Terms and Conditions for Grant of Transmission Licence and other related matters) Regulations to Vindhyachal Varanasi Transmission Ltd – EQ

Summary:

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### Detailed Analysis of the CERC Order

#### 1. Background and Project Overview
– **Petitioner:** Vindhyachal Varanasi Transmission Limited (now renamed Powergrid Prayagraj Transmission Limited), a 100% wholly-owned subsidiary of Power Grid Corporation of India Limited (PGCIL).
– **Respondents:** 54 respondents, including Central Transmission Utility of India Limited (CTUIL), PFC Consulting Limited (Bid Process Coordinator), and numerous state distribution utilities, power departments, railways, and industrial consumers across Northern and Western regions.
– **Project Objective:** Strengthening of the inter-regional transmission system between the Northern Region (NR) and Western Region (WR) to relieve loading on the existing 765 kV Vindhyachal – Varanasi Double Circuit line.
– **Tariff-Based Competitive Bidding (TBCB):** The project was bid out by PFC Consulting Limited (PFCCL) as the Bid Process Coordinator (BPC) under Ministry of Power guidelines issued under Section 63 of the Electricity Act, 2003.
– **Successful Bidder:** Power Grid Corporation of India Limited was declared the successful bidder with the **lowest quoted annual transmission charges of ₹3,231.30 million (₹323.13 Crore) per annum**.

#### 2. Project Scope and Transmission Elements

The transmission system comprises the following elements, with a scheduled Commercial Operation Date (COD) of **October 16, 2027** (24 months):

| S. No. | Transmission Element | Details |
| :— | :— | :— |
| 1 | **765 kV Prayagraj Substation** (near Prayagraj, Uttar Pradesh) | – 2×330 MVAr 765 kV Bus Reactors (7×110 MVAr, including one spare unit) <br> – 2 Nos. 765 kV Bus Reactor bays <br> – 6 Nos. 765 kV Line bays (for LILO of Fatehpur-Sasaram S/C line, LILO of Fatehpur-Varanasi S/C line, and Vindhyachal Pool-Prayagraj D/C line) <br> – **Future provisions:** Space for 4×765/400 kV ICTs, 8×765 kV line bays, 1×765 kV Bus Reactor, 4×400 kV line bays with switchable line reactors, 2×400 kV line bays, 2×400 kV Bus Reactors, and 1×400 kV sectionalization bay |
| 2 | **LILO of 765 kV Fatehpur – Varanasi S/C line** at Prayagraj | – |
| 3 | **LILO of 765 kV Fatehpur – Sasaram S/C line** at Prayagraj | – |
| 4 | **765 kV Vindhyachal Pool – Prayagraj D/C line** | – 2×330 MVAr switchable line reactors at Prayagraj end on each circuit <br> – 2 Nos. switching equipment for line reactors |
| 5 | **Bypassing both circuits of 765 kV Sasan – Vindhyachal Pool 2xS/C line** at Vindhyachal Pool | – Connecting with 765 kV Vindhyachal Pool – Prayagraj D/C line to form **765 kV Sasan – Prayagraj D/C line** |

#### 3. Regulatory Process and Compliance

**A. Prima Facie Order (January 31, 2026)**
The Commission, after initial examination, found that the Petitioner satisfied the conditions for grant of an inter-state transmission licence under Section 15 of the Act read with the Transmission Licence Regulations, 2024. It directed publication of a public notice to invite suggestions or objections.

**B. Public Notice (February 4, 2026)**
A public notice under Sub-section (5) of Section 15 of the Act was published in:
– **The Hindu** (English) – all editions
– **Dainik Jagran** (Hindi) – all editions

**Outcome:** No suggestions or objections were received from the public in response to the notice.

**C. Name Change (January 20, 2026)**
The Petitioner company changed its name from ‘Vindhyachal Varanasi Transmission Limited’ to **’Powergrid Prayagraj Transmission Limited’** , effective January 20, 2026. The certificate of change of name from the Registrar of Companies was placed on record, and the Commission took note of the same.

**D. CTUIL Recommendation**
CTUIL, in its letter dated November 3, 2025, **recommended the grant of a transmission licence** to the Petitioner.

**E. Hearing (February 17, 2026)**
During the hearing, the Petitioner’s representative confirmed that no objections were received. CTUIL reiterated its support for the licence grant.

#### 4. Key Conditions of the Transmission Licence

The Commission granted the licence subject to the following key conditions:

| Condition Category | Specific Requirements |
| :— | :— |
| **Duration** | 25 years from date of issue (unless revoked earlier) |
| **Compliance** | Adherence to Transmission Licence Regulations, 2024 (or subsequent enactments) |
| **Renewal** | Application for renewal may be made 2 years before expiry |
| **Business Restriction** | Cannot engage in electricity trading business |
| **License Fee** | Payable as per CERC (Payment of Fees) Regulations, 2012; non-payment >60 days constitutes breach |
| **Grid Discipline** | Comply with NLDC/RLDC directions; maintain transmission system availability |
| **Open Access** | Provide non-discriminatory open access as per applicable regulations (Open Access Regulations, GNA Regulations, Grid Code) |
| **Other Business** | Cannot undertake other business without prior intimation; comply with Revenue Sharing Regulations, 2020 |
| **Technical Standards** | Comply with CEA Technical Standards and Grid Standards |
| **EPC Contract** | EPC contract for execution must be awarded through competitive bidding process |
| **Reporting** | Submit all required reports/information as per regulations or Commission directions |

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