CERC Approves Transmission Tariff For 3.5 GW Rajasthan REZ Phase IV Project

The Central Electricity Regulatory Commission (CERC) has approved the adoption of transmission charges for the transmission system for evacuation of power from Rajasthan REZ Phase IV (Part-4: 3.5 GW): Part B. The project was awarded to Rajasthan IV 4B Power Transmission Limited, a wholly owned subsidiary of Dineshchandra R. Agrawal Infracon Private Limited, through a tariff-based competitive bidding process.

This transmission system is to be developed under a Build, Own, Operate, and Transfer model. The bidding process was conducted by REC Power Development and Consultancy Limited (RECPDCL), which was appointed as the Bid Process Coordinator by the Ministry of Power. The bidding process followed guidelines issued by the government to ensure transparency and competition in the selection of transmission service providers.

The bidding process started with the publication of the Request for Proposal (RfP) on July 31, 2024. Four major companies – Adani Energy Solutions Limited, Power Grid Corporation of India Limited, Sterlite Grid 32 Limited, and Dineshchandra R. Agrawal Infracon Private Limited – submitted their bids. After technical evaluation and initial price offer rounds, the final e-reverse auction was conducted on November 12, 2024. Dineshchandra R. Agrawal Infracon emerged as the lowest bidder with a final quoted transmission charge of Rs. 5,556.25 million, which was lower than the estimated cost of Rs. 6,984.7 million.

Following the reverse auction, a Letter of Intent was issued on November 25, 2024, and the share purchase agreement was completed on December 30, 2024. As per the requirements, the successful bidder acquired 100% equity in Rajasthan IV 4B Power Transmission Limited and submitted the required performance guarantee.

The project includes the establishment of a major substation near Merta (Merta-II), several high-voltage transmission lines connecting Merta with Barmer, Beawar, and Dausa, and associated switchgear and reactor installations. The entire infrastructure is expected to be commissioned within 24 months from the date of SPV transfer.

The Commission examined whether all guidelines were followed during the bid process. After reviewing the documents and receiving the necessary certifications from the Bid Evaluation Committee, CERC concluded that the tariff discovery and the selection of the transmission service provider were done transparently and fairly. Hence, it approved the adoption of the final transmission charges.

These charges will now be applicable as per the Central Electricity Regulatory Commission’s regulations on the sharing of inter-state transmission charges and losses. The order ensures that all stakeholders, including the nodal agency and other connected utilities, are informed and aligned with the new charges and project timeline. With this, the petition stands resolved.