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CERC Grants Transmission License To Pachora Power Transmission For RE Project In Madhya Pradesh

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Representational image. Credit: Canva

On June 15, 2024, the Central Electricity Regulatory Commission (CERC) in New Delhi issued an order in response to Petition. The petition, submitted by Pachora Power Transmission Limited, sought the grant of a transmission license under Sections 14, 15, and 79(1)(e) of the Electricity Act, 2003. The request was made in accordance with the Central Electricity Regulatory Commission (Procedure, Terms and Conditions for Grant of Transmission Licence and other related matters) Regulations, 2009. The petition aimed to establish a transmission system for the evacuation of power from renewable energy projects in the Rajgarh (1,000 MW) SEZ in Madhya Pradesh, Phase II, on a Build, Own, Operate, and Transfer basis.

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The order was presided over by Shri Jishnu Barua, Chairperson, along with members Shri Arun Goyal and Shri Ramesh Babu V. The petitioner, Pachora Power Transmission Limited, is based in Gurugram, Haryana. Several respondents were involved, including Central Transmission Utility of India Limited, REC Power Development & Consultancy Limited, and various state power transmission and distribution companies from Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Goa, and other entities.

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The Commission reviewed the application of Pachora Power Transmission Limited, which included the establishment of specific transmission elements such as 400/220 kV transformers, line bays, and sectionalizers at Pachora Power Station. Additionally, the project involved constructing a 400 kV double circuit line between Pachora Power Station and Ujjain (MPPTCL), including two 400 kV line bays at Ujjain.

Following a competitive bidding process conducted by REC Power Development & Consultancy Limited (RECPDCL) as the Bid Process Coordinator (BPC), GR Infraprojects Limited emerged as the successful bidder with the lowest quoted annual transmission charges of Rs. 419.74 million. Subsequently, GR Infraprojects Limited acquired Pachora Power Transmission Limited on February 14, 2024, after executing the Share Purchase Agreement (SPA).

The Commission initially considered the application and, on May 24, 2024, proposed granting the transmission license to Pachora Power Transmission Limited. The proposal was followed by a public notice published on May 30, 2024, in all editions of the Times of India (English) and Amar Ujala (Hindi), inviting suggestions or objections from the public. No objections were received.

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The case was called for a hearing on June 13, 2024, where it was noted that no objections had been raised in response to the public notice. The Commission found that the petitioner met the requirements under the Electricity Act and the Transmission Licence Regulations for the grant of the license. Consequently, the Commission decided to grant the transmission license to Pachora Power Transmission Limited for the specified transmission system on a Build, Own, Operate, and Transfer basis.

The grant of the transmission license is subject to several conditions. The license shall remain in force for 25 years from the date of issue, unless revoked earlier. The licensee must comply with the Transmission Licence Regulations and any subsequent enactments during the license period. The licensee may apply for renewal two years before the initial license period expires. The licensee shall not engage in the business of trading electricity. The licensee is liable to pay the license fee as per the Central Electricity Regulatory Commission (Payment of Fees) Regulations, 2012, or any subsequent enactments.

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The licensee must comply with directions from the National Load Despatch Centre or the Regional Load Despatch Centre for maintaining the availability of the transmission system. The licensee must provide non-discriminatory open access to its transmission system as per the relevant regulations. The licensee cannot undertake any other business using the transmission system without prior intimation to the Commission.

Please view the document here for more details.

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