In the matter for the Adoption of Transmission Charges to Transmission System by the SR WR Power Transmission Limited – EQ

Summary:

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### Key Business Points

#### 1. Project Overview
– **Project Name:** “Inter-Regional Strengthening between SR Grid and WR Grid”.
– **Scope of Work:**
– 765 kV D/C transmission line between Parli New and Bidar.
– 240 MVAr Switchable Line Reactors (SLR) at the Bidar end on both circuits.
– 765 kV line bays (2 nos.) at Bidar PS and Parli New PS.
– **Scheduled Commercial Operation Date (COD):** 24 months from the transfer of the SPV to the successful bidder, i.e., **October 17, 2027**.
– **Estimated Project Cost:** ₹9,221 Million (as per Gazette Notification).

#### 2. Competitive Bidding Process & Outcome
The bidding process was conducted in accordance with the Ministry of Power’s “Tariff-based Competitive Bidding Guidelines for Transmission Service” (2021, as amended).

– **Bid Process Coordinator (BPC):** REC Power Development and Consultancy Limited (RECPDCL).
– **Key Dates:**
– **RfP Publication:** June 20, 2025.
– **e-Reverse Auction:** September 23, 2025.
– **Letter of Intent (LoI) Issued:** September 29, 2025.
– **Transfer of SPV & Signing of Agreements:** October 17, 2025.

– **Bidders Participated:** Six bidders initially submitted offers, including PGCIL, Resonia Limited, Enerica Infra 1, Montecarlo Limited, Adani Energy Solutions, and Torrent Power.
– **e-Reverse Auction:** Conducted over 26 rounds on September 23, 2025.
– **Final Results:**
– **Successful Bidder:** Power Grid Corporation of India Limited (PGCIL).
– **Discovered Annual Transmission Charges:** **₹1,047.59 Million**.
– **Runner-up:** Enerica Infra 1 Private Limited (₹1,050.22 Million).

#### 3. Regulatory Adoption & Certification
– The Commission, in its order, confirmed that the bidding process was transparent and followed all prescribed guidelines.
– The **Bid Evaluation Committee (BEC)** certified that:
– The entire bid process complied with the Central Government’s guidelines.
– The discovered tariff of ₹1,047.59 Million is the lowest and is acceptable.
– This tariff is lower than the estimated annual transmission charges of ₹1,204.77 Million (based on estimated cost and CERC Tariff Regulations, 2024).
– The Commission **adopted the discovered tariff** under Section 63 of the Electricity Act, 2003.

#### 4. Business Implications
– **For PGCIL (as the TSP):** The order provides regulatory certainty on the tariff it can charge for the project over the concession period, allowing it to finalize financing and project execution plans.
– **For Beneficiaries (DISCOMs & other users):** The discovered tariff of ₹1,047.59 Million annually is now a binding cost that will be shared among all designated customers in the Southern and Western Regional grids, impacting their power procurement costs.
– **For the Sector:** This order reaffirms the effectiveness of the competitive bidding framework (Section 63) in discovering efficient and competitive transmission tariffs, with the final price (₹1,047.59 Million) being significantly lower than the initial estimate (₹1,204.77 Million) and initial offers (e.g., the L1 initial offer was ₹1,118.16 Million). The 26-round e-reverse auction demonstrated price discovery in action.

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