CERC Reviews Raigarh-Pugalur HVDC Tariff Petitions, Declares 50% Charges As National Component After APTEL Remand

The Central Electricity Regulatory Commission issued an order on July 19, 2025, concerning two petitions filed by Power Grid Corporation of India Limited (PGCIL). These petitions seek approval for the transmission tariff from the date of commercial operation (COD) until March 31, 2024, for high-voltage direct current (HVDC) transmission assets under the Raigarh-Pugalur 6,000 MW HVDC System, which connects the Western and Southern regions of India.

The assets in question include 1,500 MW HVDC terminals (Poles II, III, and IV) at Raigarh and Pugalur stations. The petitions also cover claims for additional capitalisation, interest on loan due to floating interest rates, licensee and RLDC fees, tax impacts like GST, and security expenses. PGCIL requested permission to recover these from the beneficiaries, including 76 respondent entities across the country.

Earlier, the Commission had passed tariff orders in 2023, but Tamil Nadu Generation and Distribution Corporation (TANGEDCO) challenged them before the Appellate Tribunal for Electricity (APTEL). APTEL remanded the cases, stating that the issue of whether these transmission assets qualify as of national importance—so that their charges could be shared on a national basis—needed fresh review. The Tribunal also referred to a Ministry of Power letter recommending such classification.

The Supreme Court upheld APTEL’s remand, directing the Commission to review the matter in consultation with statutory bodies like the Central Transmission Utility of India (CTUIL), the Central Electricity Authority (CEA), and POSOCO. Following this, the Commission impleaded respondents from all regions and proceeded to evaluate the petitions afresh.

The Raigarh-Pugalur link has enabled significant power transfers between regions and supports reverse power flow, especially during the high renewable energy (RE) season. Evidence showed that Southern India exported power to the national grid through this system, underlining its strategic value.

The Commission reviewed previous tariff approvals, cost submissions, delays in project commissioning, and capital cost adjustments. It accepted the CODs of the assets as March 9, 2021, and July 13, 2021, respectively, with condoned delays of 490 and 616 days due to uncontrollable factors like forest clearances, court cases, right-of-way issues, and the COVID-19 pandemic.

TANGEDCO argued that the delays were controllable, but the Commission maintained its earlier view that delays were justified and not due to PGCIL’s fault. The Commission reiterated that while the tariff determination from earlier orders remained valid, the focus of the remand was only on whether the Raigarh-Pugalur HVDC system should be treated as a National Component.

After considering responses from various stakeholders, the Commission upheld its previous decisions on tariffs and delays but took into account the submissions regarding national importance. It concluded that 50% of the transmission charges would be considered under the National Component, with potential for a higher share if reverse flow capacity increases. The Commission also directed PGCIL to seek funding support from PSDF to ease the financial burden on beneficiaries.