The Central Electricity Regulatory Commission has issued a new order approving an inter-State transmission license for Mandsaur I RE Transmission Limited, which is now renamed as POWERGRID Mandsaur Augmentation Transmission Limited. The order was released on January 5, 2026, after the company, a fully owned subsidiary of Power Grid Corporation of India Limited, applied for the license under the legal provisions of the Electricity Act, 2003. The purpose of the license is to support a major infrastructure project at the Mandsaur substation that aims to increase transformation capacity and set up new line bays to help connect renewable energy projects to the national grid. The project follows a Build, Own, Operate, and Transfer development model, which means the company will construct and run the system for a fixed period before eventually handing it over as per the agreed terms.
The project involves several advanced technical upgrades that are essential for integrating large-scale solar, wind, and hybrid energy projects coming from developers such as Waaree Renewables Technologies, NTPC Renewable Energy, and JSP Green. Among the major works planned are the installation of new 400 kV and 765 kV bus sections, as well as the addition of Inter-Connecting Transformers, which play a critical role in balancing voltage levels and ensuring smooth transfer of power. The project also includes setting up specific line bays required for the safe and efficient flow of electricity. The scheduled commercial operation dates for these components fall between March 2027 and March 2028, giving the company a clear timeline for execution of the project in phases.
The selection of the company for this project was done through a competitive bidding process that was conducted by PFC Consulting Limited. Power Grid Corporation of India Limited emerged as the winning bidder by offering the lowest annual transmission charges of Rs. 446.99 million. As part of the licensing procedure, the Commission issued a public notice on December 18, 2025, inviting objections or suggestions from stakeholders and the general public. No objections were received within the timeline, which expired on December 31, 2025. Before the license was granted, the Central Transmission Utility of India Limited, which is responsible for overseeing and planning the national transmission network, recommended approval of the license in October 2025.
The license granted by the Commission includes several terms and conditions meant to ensure that the project is executed properly and that it contributes positively to the stability of the power grid. The license will remain valid for 25 years unless it is revoked earlier due to non-compliance or any other serious issue. One of the conditions is that the company cannot take part in electricity trading during the license period. Another important condition is that the transmission system must be operated with non-discriminatory open access so that any qualified user can connect and transfer power through the system without unfair restrictions.
The company must also comply with all technical standards issued by the Central Electricity Authority to maintain safety, reliability, and performance. In addition, the licensee is required to award the EPC contract for developing the project through a competitive bidding route to ensure transparency and cost efficiency. Both CTUIL and CEA will continuously monitor the progress of the project to make sure that the construction activities follow the approved schedules and that the assets are completed on time.
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