The Central Electricity Regulatory Commission (CERC) issued an important order on May 24, 2025, regarding a petition filed by POWERGRID South Olpad Transmission Limited. This company, a wholly owned subsidiary of Power Grid Corporation of India Limited, applied for a transmission license to build and operate a transmission system connecting renewable energy zones in Gujarat to the wider grid.
The project is called “Transmission System for Evacuation of Power from Potential Renewable Energy Zone in Khavda area of Gujarat under Phase-IV (7 GW): Part B.” It is planned to be developed on a Build, Own, Operate and Transfer (BOOT) basis. The key components include a large 765/400 kV GIS substation near South Olpad with two 1500 MVA transformers, along with associated reactors and bays. The project also involves the construction of new 765 kV double circuit transmission lines from Vadodara and Ahmedabad to South Olpad, plus a Loop In Loop Out (LILO) connection of an existing 400 kV line at South Olpad.
During the hearing held on January 13, 2025, POWERGRID South Olpad Transmission Limited confirmed it met all regulatory requirements under the Transmission Licence Regulations. The Central Transmission Utility of India Limited (CTUIL) explained how the project fits into the bigger picture of India’s transmission network, ensuring a smooth flow of power from renewable zones to other areas. CTUIL emphasized that this project supports the national goal of achieving 500 GW of non-fossil fuel energy capacity by 2030, with the Khavda area expected to contribute 30 GW.
The bidding for this project was handled by PFC Consulting Limited, acting as the Bid Process Coordinator. Power Grid Corporation of India Limited won the bid after an e-reverse auction in July 2024, quoting transmission charges of Rs. 5566.86 million annually. Following the bid, a Letter of Intent was issued in September 2024, and Power Grid acquired full ownership of South Olpad Transmission Limited in October 2024. A Transmission Service Agreement was also signed with CTUIL, setting the scheduled commercial operation date as October 15, 2028, which is 24 months after the project’s effective start date.
An objection was raised by Mr. A.P. Patel concerning excavation work on agricultural land before the deadline for raising objections and the disclosure of the transmission line’s route map. However, the Petitioner responded by saying the objection was submitted late and did not question the company’s eligibility for the license. The Petitioner also clarified that the transmission line is essential for evacuating renewable power and that all necessary communication with landowners, including Mr. Patel, was completed. They referred to legal rulings that compensation for any loss in land value should be addressed but should not delay construction work. The Commission noted the objection but asked the Petitioner to handle it as per the law.
CTUIL recommended granting the transmission license, stating the project is aligned with India’s energy goals and has been discussed in multiple consultations. The Commission observed that the Petitioner met the necessary conditions to receive an inter-state transmission license. As a next step, a public notice was issued to invite suggestions or objections until June 3, 2025. The Petitioner has agreed to carry out the project in line with the Transmission Service Agreement and applicable regulations. The Commission scheduled the next hearing for June 5, 2025, to further consider the petition.
This transmission project is seen as a critical step toward supporting large-scale renewable energy integration in Gujarat and helps India move closer to its ambitious clean energy targets for 2030.
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