PGCIL Secures Approval For Transmission Tariffs In Srinagar-Leh System, Enhancing Power Supply Reliability In Jammu And Kashmir

The recent order pertains to a petition filed by the Power Grid Corporation of India Limited (PGCIL) seeking approval of transmission tariffs for assets under the Srinagar-Leh Transmission System (SLTS) covering the period from late 2019 to March 2024. This transmission system is critical for providing reliable power supply to the northern regions, including Jammu and Kashmir and Ladakh, and its construction has been largely funded by the central government.

The commission’s order takes into account several aspects of the petition, such as the determination of transmission charges, the additional capital expenditure (ACE) after the commercial operation date, and the specific costs associated with maintenance and operations during the period in question. Additionally, the commission reviewed the technical requirements and associated costs for maintaining the transmission system in this challenging geographical terrain.

For the purpose of the order, a detailed cost breakdown was presented, including depreciation, interest on loans, return on equity, and other financial elements that form part of the tariff determination. For instance, the petitioner sought approval for ₹13867.31 lakh in total project costs, with the majority of the funding coming from central government grants. Moreover, there was a focus on the procurement of essential tools and spares needed for uninterrupted power transmission, especially given the region’s harsh climatic conditions.

The commission addressed the petitioner’s request for additional capital expenditure to cover costs related to undischarged liabilities and other necessary procurements such as tools and spare parts to maintain the system. It was noted that these additional expenses would need to be prudently managed and validated during the true-up process, where final costs are reconciled based on actual expenditure.

The order also touches upon the reimbursement of security expenses, licenses, and charges related to the maintenance of the transmission assets. Though the petitioner requested reimbursement for security-related expenses, the commission noted that these claims would be handled separately as they are outside the scope of the current petition. The petitioner also mentioned its intention to file a separate petition for any taxes, such as GST, that might be levied in the future on the transmission services.

The commission approved the transmission tariff for the assets in question, emphasizing that the petitioner would need to submit final figures during the true-up process for full reconciliation. This decision was made after taking into account the operational challenges, the strategic importance of the transmission system, and the need for reliable power supply in the region.