In the matter of the CERC (Procedure, Terms and Conditions for Grant of Transmission License and other related matters) Regulations to Angul Sundargarh Transmission Ltd. – EQ

Summary:

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### Key Dates & Compliance Timeline

| Activity | Date |
|———-|——|
| Bidding process start | 29.03.2024 |
| Bidding process concluded | 28.07.2025 |
| Letter of Intent (LoI) issued | 19.06.2025 |
| SPV acquired by H.G. Infra | 28.07.2025 |
| Petition for transmission licence filed | 04.08.2025 (within 5 working days) |
| CERC interim order (prima facie proposal) | 13.02.2026 |
| Public notice published (Times of India & Dainik Jagran) | 19.02.2026 |
| Deadline for public objections | 24.02.2026 |
| Final order granting licence | 07.04.2026 |

### CERC’s Key Observations

1. **Dedicated Transmission Line (DTL) Character:** The transmission scheme is essentially a **dedicated transmission line** for evacuating power from the NLC Talabira Generation Station. For a DTL, normally no transmission licence is required, and the generator should establish it.

2. **Exception Granted:** However, since the **competitive bidding process under Section 63** was already completed and the TSA signed, the Commission decided to grant the licence as a **special case** to ensure timely power evacuation and prevent generation from getting stranded.

3. **No Objections Received:** Public notice was published on 19.02.2026. No suggestions/objections were received from the public or any stakeholders. CTUIL had recommended grant of licence.

4. **Relaxation of Regulations:** The Commission exercised its **power to relax** under Regulation 21 of the 2024 Transmission Licence Regulations to grant the licence.

### Key Condition Imposed (Para 12 of Order)

> **”The entire transmission charges for the instant transmission system shall be borne and paid solely by the generating station (NLC Talabira).”**

– **CTUIL** shall raise monthly bills on the generating station post-COD and reimburse the transmission charges to the Petitioner (ASTL)
– In case of non-payment, the generating station shall be liable for late payment surcharge as per the 2022 Sharing Regulations

### Licence Terms & Conditions (Para 14)

| Condition | Detail |
|———–|——–|
| **Validity period** | 25 years from date of issue (unless revoked earlier) |
| **Renewal** | May apply 2 years before expiry |
| **No trading business** | Licensee shall not engage in electricity trading |
| **License fee** | Payable as per CERC (Payment of Fees) Regulations, 2012 |
| **Open access** | Non-discriminatory open access to transmission system |
| **No other business** | Without prior intimation to CERC |
| **EPC contract** | Must be awarded through competitive bidding process |
| **Monitoring** | CTUIL and CEA to monitor execution and report lapses |

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## Business Points (Key Takeaways for Stakeholders)

| Business Point | Implication |
|—————|————-|
| **Licence granted as special case** | CERC relaxed regulations to grant licence despite the line being a “dedicated transmission line” – sets a precedent for similar cases where TBCB has already been completed |
| **Generator pays entire transmission charges** | NLC Talabira (generating station) bears full cost – not socialized across beneficiaries. This is a significant departure from normal ISTS cost sharing |
| **Tariff discovered: ₹431.11 million/annum** | Fixed annual transmission charge for 25 years – provides revenue certainty for ASTL |
| **SCOD: 28 March 2028** | Project must be commissioned by this date; monitoring by CTUIL & CEA |
| **No public objections received** | Suggests stakeholder acceptance or lack of controversy |
| **CTUIL to handle billing & reimbursement** | CTUIL bills NLC Talabira and pays ASTL – ASTL has no direct collection risk from generator (but indirect if CTUIL faces non-payment) |
| **Non-payment by generator** | Generator liable for late payment surcharge – protects ASTL’s cash flow |
| **EPC must be competitively bid** | ASTL cannot award EPC contract through nomination – must follow competitive bidding |
| **Open access obligation** | Transmission system must provide non-discriminatory open access to any eligible user – not just NLC Talabira |
| **No trading business allowed** | ASTL restricted to transmission business only |
| **Monitoring by CTUIL & CEA** | Regulatory oversight ensures timely execution |

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