Petition with CERC (Procedure, Terms and Conditions for Grant of Transmission License and other related matters) Regulations at Navinal (Mundra)(GIS) under RTM route – EQ

Summary:

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### **Project Specifics**
– **Location:** Navinal (Mundra), Gujarat
– **Purpose:** Transmission system for providing **connectivity to Renewable Energy (RE) applicants** at Navinal (Mundra) GIS (Gas Insulated Substation)
– **Route:** **Regulated Tariff Mechanism (RTM)** – meaning the transmission asset will earn a regulated return on equity and cost-plus tariff, as opposed to competitive bidding (Tariff Based Competitive Bidding / TBCB).

### **Hearing Details**
– **Date of Hearing:** 18 March 2026
– **Coram:** Chairperson and three Members of CERC
– **Petitioner’s Representative:** Shri Prashant Kumar (NNTL)

### **Key Development**
– On the previous hearing date (03 March 2026), CERC had directed **CTUIL** to submit information regarding the **cost of the project**.
– CTUIL complied and submitted the required information on **17 March 2026**.
– After considering the submissions, the **Commission reserved the matter for order** – meaning no further hearing is required unless the order is challenged or reopened.

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## **Key Business Points**

### 1. **New Transmission License for RE Connectivity**
– NNTL is seeking a **separate transmission license** to build and operate a transmission system at **Navinal (Mundra)** .
– The system will connect **renewable energy applicants** (solar, wind, hybrid projects in the region) to the inter-State grid.

### 2. **Regulated Tariff Mechanism (RTM) Route**
– Unlike TBCB (competitive bidding), **RTM** allows the developer to get a **regulated tariff** approved by CERC (cost-plus basis).
– This typically includes:
– Return on equity (RoE) – often 15-16% as per CERC norms
– Depreciation
– O&M expenses
– Interest on loans
– RTM is usually adopted when the project is **identified by CTUIL / Planning authorities** as a priority or strategic asset.

### 3. **CTUIL’s Role & Project Cost Approval**
– CTUIL (Central Transmission Utility of India Limited) is a key respondent and was directed to provide **project cost information**.
– CERC’s final order will likely approve or modify:
– The **capital cost** of the project
– The **license terms**
– The **tariff** to be charged to RE applicants

### 4. **Matter Reserved for Order – Positive Sign**
– The Commission **reserving the matter** indicates that:
– No further objections or clarifications are pending.
– An **order is likely to be issued soon** (typically within weeks).
– License grant and tariff approval are probable.

### 5. **Strategic Importance of Mundra (Navinal)**
– Mundra (Gujarat) is a **major renewable energy hub** with large-scale solar, wind, and hybrid parks.
– A dedicated transmission system for RE applicants at Navinal GIS will:
– Reduce congestion
– Provide reliable evacuation
– Enable new RE projects to get connectivity faster

### 6. **Implications for RE Developers**
– Once the license is granted, **RE applicants** in the Mundra region can apply for connectivity to NNTL’s system.
– The tariff will be regulated – so **predictable transmission cost** for RE generators.
– May reduce dependence on CTUIL’s common transmission system.

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