Ministry Of Power Revises Location Norms For Transmission Projects Under Tariff-Based Competitive Bidding

The Ministry of Power has introduced amendments to the Standard Bidding Documents (SBDs) for procuring Inter-State Transmission Services through the Tariff-Based Competitive Bidding (TBCB) process. These amendments pertain to the Request for Proposal (RfP) and the Transmission Service Agreement (TSA), which were originally issued on August 6, 2021. The changes have been made following representations from transmission developers who sought relaxation in location restrictions for substations, switching stations, and HVDC terminals or inverter stations.

Previously, the RfP and TSA documents mandated that the actual location of generation pooling substations and load-serving substations should not exceed a 3 km radius from the location specified in the survey report. Similarly, the location of Greenfield Intermediate Substations was limited to a 10 km radius. Transmission developers raised concerns regarding these strict location restrictions, prompting the Ministry of Power to consult stakeholders and review the provisions.

As a result of this review, the ministry has approved modifications to the location criteria. Now, the location of Greenfield Substations, including Switching Stations and HVDC Terminals or Inverter Stations, must still adhere to certain radius limits but with revised flexibility. The specific amendments state that for a Generation Pooling Substation, the location must not exceed a 3 km radius from the specified location. However, for Load Serving Substations, the limit has been increased to 5 km. Meanwhile, for an Intermediate Substation, the location restriction remains within a 10 km radius.

The amendments also apply to the acquisition of land for substations, switching stations, and HVDC terminals or inverter stations. The modifications provide additional flexibility to Transmission Service Providers (TSPs), allowing them to adjust locations while still maintaining efficiency and compliance with the survey guidelines.

The Ministry of Power has emphasized that these changes aim to streamline project execution and reduce challenges faced by transmission developers. The relaxation in location criteria is expected to facilitate smoother land acquisition, reduce project delays, and enhance the efficiency of transmission infrastructure development. The amendments also align with the government’s broader objective of improving the country’s power transmission network to support increasing electricity demand and renewable energy integration.

The Bureau of Power Committee (BPC), responsible for conducting surveys and identifying suitable project locations, will implement these changes in future bid processes. Transmission developers will now have greater flexibility while ensuring that substations remain within the revised permissible limits.

This amendment is a significant step toward addressing industry concerns and fostering the expansion of India’s power transmission sector. By providing more practical location constraints, the revised guidelines will enable faster project implementation while maintaining regulatory oversight. The Ministry of Power remains committed to ensuring efficient and timely infrastructure development, which is crucial for meeting the country’s growing energy needs.

The decision has been officially approved by the Minister for Power and is expected to provide much-needed relief to developers while maintaining the integrity of the competitive bidding process. Moving forward, these changes will help optimize planning and execution in the power transmission sector, ensuring that projects are completed efficiently and effectively.