Fatehgarh IV Transmission Limited Leads Pioneering Transmission Charges For Power Evacuation In Rajasthan’s REZ (20 GW)

In a significant development within India’s electric power sector, Fatehgarh IV Transmission Limited has filed a petition under Section 63 of the Electricity Act, 2003, seeking the adoption of transmission charges for the “Transmission System for Evacuation of Power from REZ (20 GW) under Phase III-Part A1 in Rajasthan.” This ambitious project is structured on a Build, Own, Operate, and Transfer (BOOT) basis, underscoring the growing momentum of private entities in driving the country’s energy transition.

Upon receiving the petition, the Bid Process Coordinator (BPC), PFC Consulting Limited (PFCCL), was directed to furnish the relevant documents related to the competitive bidding process. The absence of responses from the respondents, including the impleaded beneficiaries, has prompted a closer examination of the adherence to guidelines and transparency in the bidding process.

Notably, the Ministry of Power, Government of India, has issued “Tariff based Competitive-bidding Guidelines for Transmission Service” and “Guidelines for Encouraging Competition in Development of Transmission Projects” under Section 63 of the Electricity Act. These guidelines serve as the framework for ensuring a transparent and competitive bidding process.

PFCCL, designated as the Bid Process Coordinator, played a pivotal role in this process. It was entrusted with the responsibility of selecting a bidder as a Transmission Service Provider to establish the Inter-State Transmission System for the “Evacuation of Power from REZ (20 GW) under Phase III-Part A1 in Rajasthan.” Fatehgarh IV Transmission Limited, a wholly-owned subsidiary of PFCCL, was incorporated to carry out this project.

The bidding process, initiated with a Global Invitation for Qualification, attracted responses from numerous developers interested in participating in a Build, Own, Operate, and Transfer model. The subsequent stages involved meticulous evaluations, including an e-reverse auction, to determine the most qualified bidder for the project.

Apraava Energy Private Limited emerged as the successful bidder, securing the transmission charges at ₹248.67 million per annum. The process, overseen by the Bid Evaluation Committee (BEC), adhered to the stipulations outlined in the bidding documents and guidelines, ensuring a fair and competitive environment.

Despite procedural challenges, Fatehgarh IV Transmission Limited, through its successful bidder, filed a petition seeking the adoption of transmission charges, as discovered through the competitive bidding process. The regulatory body is now tasked with evaluating the compliance of the process with the guidelines and ensuring the legitimacy of the transmission charges proposed by the successful bidder.

In a bid to expedite the project, the petitioner has also sought to leverage a policy incentivizing early commissioning of transmission elements before the Scheduled Date of Commercial Operation (SCOD). However, this request falls beyond the current scope of the petition, focusing solely on the adoption of tariffs. As the regulatory process unfolds, the fate of the “Transmission System for Evacuation of Power from REZ (20 GW) under Phase III-Part A1 in Rajasthan” project hangs in the balance. The case underscores the intricate interplay between regulatory frameworks, competitive bidding processes, and the resilience required to navigate challenges in shaping the future of India’s electric power landscape.

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