The Karnataka Electricity Regulatory Commission has issued a new notification introducing draft regulations for intra-state transmission projects that will be selected through Tariff-Based Competitive Bidding (TBCB). The draft was published in the official gazette on April 2, 2026, and is aimed at setting clear procedures, terms, and conditions for granting transmission licenses to developers chosen under this competitive route in Karnataka.
The Commission explained that while its existing regulations from 2004 provide a general framework for licensing, there was a need for specific provisions tailored to projects awarded under the TBCB mechanism. This move is intended to align the state-level process with the guidelines issued by the Ministry of Power. Under these guidelines, the Commission is responsible for granting transmission licenses to selected entities, usually formed as Special Purpose Vehicles (SPVs), and for formally adopting the discovered transmission charges.
As per the draft regulations, any entity selected through the competitive bidding process will be eligible to apply for a transmission license. The application must be submitted in the prescribed Form I along with the required fees and an affidavit. To ensure transparency, applicants will also need to upload the complete application on their official website and publish a public notice in both English and Kannada newspapers. This step allows stakeholders and the general public to raise objections or provide comments within 15 days.
The Karnataka Power Transmission Corporation Limited, which acts as the State Transmission Utility (STU), will play an important role in the process by reviewing the proposal and submitting its recommendations to the Commission before a final decision is made.
Once granted, a transmission license will generally remain valid for 25 years. During this period, the licensee will be required to develop, operate, and maintain the transmission system in an efficient and cost-effective manner. They must also ensure non-discriminatory open access to the network and comply with all applicable safety standards and grid codes. The regulations clearly state that transmission license holders cannot engage in electricity trading activities.
The draft also outlines financial responsibilities for licensees. An annual license fee must be paid by April 30 each year. In addition, the Commission has proposed amendments to its existing fee regulations. A fixed annual fee of Rs. 20 lakh has been suggested for other transmission licensees, replacing the earlier capacity-linked fee structure. Another proposal includes a fee of Rs. 25 lakh for applications seeking the adoption of tariffs under Section 63 of the Electricity Act.
Strict provisions have been included for revoking licenses in cases such as willful default, violation of conditions, or financial weakness that affects project execution. If a project is abandoned, the Commission may direct the STU to take over operations temporarily.
The Commission has invited stakeholders and interested parties to submit their comments or suggestions within 15 days of the notification to its office in Bengaluru.
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