The Rajasthan Electricity Regulatory Commission (RERC) has issued an important order regarding the investment plan proposed by the Rajasthan State Load Despatch Center (SLDC) for the financial year 2026–27. The decision came after the Commission reviewed a petition filed by the SLDC seeking approval for a total capital investment of ₹10 crore to strengthen and modernize the state’s power grid operations.
The order was issued by the Commission led by Chairman Dr. Rajesh Sharma. The SLDC had proposed the investment to improve grid security, upgrade technical systems, and enhance infrastructure at its facilities.
According to the proposal submitted to the Commission, the largest portion of the requested investment—₹8.82 crore—was planned for establishing an indigenous Security Operation Centre (SOC) and Network Operation Centre (NOC). These facilities were intended to improve cybersecurity and network monitoring capabilities within the state’s power grid management system.
In addition to the security and network operations project, the SLDC also proposed a smaller technical upgrade. It requested ₹0.18 crore for installing Automatic Power Factor Correction (APFC) panels. These panels help improve power factor levels and reduce the risk of penalties related to electricity billing.
Another part of the proposal involved infrastructure augmentation. The SLDC sought ₹1.00 crore for improvements at its facilities, including upgrades to the control room building and construction work related to the boundary wall and other supporting infrastructure.
However, during public hearings conducted earlier in 2026, several stakeholders raised concerns about the proposal. One of the key issues highlighted was that the SLDC has not yet been fully segregated from the Rajasthan Rajya Vidyut Prasaran Nigam (RVPN). Stakeholders argued that this situation does not fully comply with the provisions of the Electricity Act 2003, which requires functional independence for load despatch centres.
Some stakeholders also pointed out that the SLDC had not fully utilized its previously approved funds. According to the submissions made during the hearing, only about ₹1.36 crore of earlier allocations had been spent by late 2025. Because of this, they questioned the need for a large new capital investment and argued that certain expenses included in the proposal appeared to be routine maintenance rather than capital assets.
After reviewing the petition and the objections raised during the hearings, the Commission conducted what it described as a detailed prudence check of the proposed investments. Based on this assessment, the Commission approved only a small portion of the requested funds.
The Commission rejected the request of ₹8.82 crore for establishing the SOC and NOC. It stated that the SLDC had not yet obtained formal approval from the Government of India for financial support through the Power System Development Fund (PSDF), which was expected to support the project.
However, the Commission approved the ₹0.18 crore requested for the installation of APFC panels after the SLDC submitted the required Detailed Project Reports.
For the infrastructure augmentation proposal, the Commission noted that the SLDC had provided proper documentation only for ₹0.50 crore of the requested ₹1.00 crore. After reviewing the details, the Commission approved ₹0.45 crore and excluded certain items such as waste water drainage works, stating that these fall under routine operation and maintenance expenses rather than capital investment.
Overall, the Commission approved a total capital investment of ₹0.63 crore for the 2026–27 financial year. It also granted in-principle permission for the SLDC to raise loans for the approved amount. At the same time, the Commission made it clear that any expenditure beyond the approved limit must be brought back for further review and justification.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
