The Karnataka Electricity Regulatory Commission has issued a new draft notification aimed at improving the development of intra-state electricity transmission projects in Karnataka. The draft regulations were published in the state gazette on April 2, 2026, and focus on projects that are awarded through the Tariff-Based Competitive Bidding (TBCB) process. This step is in line with the broader guidelines issued by the Ministry of Power to promote transparency, efficiency, and competition in the power sector.
The proposed regulations are titled “Karnataka Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of Transmission License and other related matters in respect of intra-State Transmission Projects selected through Tariff-Based Competitive Bidding) Regulations, 2026.” The main purpose of these rules is to create a clear and structured process for both private and public companies to apply for and receive transmission licenses. Earlier, licensing was governed by older regulations introduced in 2004, but the Commission felt there was a need for specific provisions for projects developed under the TBCB route.
According to the draft, any company selected through the competitive bidding process must apply for a transmission license using a prescribed format called Form-I. Applicants will also need to pay the required fees as decided by the government. To ensure transparency, companies must upload their full application on their official website and also publish a public notice in newspapers in both English and Kannada. This step is intended to invite feedback and objections from the public and other stakeholders.
The role of the State Transmission Utility has also been clearly defined in the draft. The Karnataka Power Transmission Corporation Limited, which acts as the State Transmission Utility (STU), will review the applications and provide its recommendations within a period of 10 to 30 days. This is expected to speed up the approval process while maintaining proper checks.
Once a license is granted, it will remain valid for a period of 25 years. Companies that receive the license must build, operate, and maintain the transmission system in an efficient manner. They are also required to provide non-discriminatory open access to their network so that multiple users can benefit. In addition, they must follow all technical and safety standards set by the Central Electricity Authority. The draft clearly states that these transmission license holders cannot take part in electricity trading activities.
Along with these rules, the Commission has also proposed changes to its fee regulations. Under the draft amendment, an annual license fee of Rs. 20 lakh will be charged from transmission license holders. A separate fee of Rs. 25 lakh has been proposed for the adoption of transmission tariffs under Section 63 of the Electricity Act.
The Commission has invited comments, suggestions, and objections from the public and stakeholders within 15 days from the date of publication. These responses must be submitted to the Secretary of the Commission at its Bengaluru office. The regulations will come into effect only after they are finalized and officially notified again.
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