RERC Rejects RUVITL Review Plea On 3,200 MW Coal-Based RTC Power Procurement In Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) in Jaipur has issued an important order on a review petition filed by Rajasthan Urja Vikas & IT Services Limited (RUVITL). The company had approached the Commission seeking a review of an earlier order dated November 18, 2025, in which the Commission had rejected its proposal to initiate competitive bidding for the procurement of 3,200 MW of coal-based Round-the-Clock (RTC) power for a period of 25 years. RUVITL is responsible for power procurement on behalf of Rajasthan’s distribution companies.

In the original petition, RUVITL proposed to procure 3,200 MW of thermal power on a Design, Build, Finance, Own, and Operate (DBFOO) basis. The company argued that Rajasthan could face long-term power shortages in the future, as projected by the Energy Assessment Committee (EAC). However, the Commission had earlier refused permission for the bidding process after identifying a major mismatch between the proposed procurement quantity and the projections provided in the Central Electricity Authority’s (CEA) Resource Adequacy Plan (RAP) 2025.

According to the CEA’s assessment, Rajasthan would require only around 1,905 MW of additional coal-based power capacity by the financial year 2035–36 after considering projects already planned or under development. Based on this data, the Commission had directed RUVITL to reassess its calculations in consultation with the CEA and submit a fresh petition if necessary.

Instead of filing a new petition, RUVITL submitted a review petition and relied on a clarification letter later issued by the CEA. The company described the clarification as “new and important evidence.” RUVITL stated that the CEA had clarified Rajasthan’s total coal-based capacity requirement at 4,440 MW. Out of this, 2,535 MW was already planned through joint ventures and state projects, leaving 1,905 MW untied. The company further argued that if the retirement of 1,350 MW of older thermal capacity was also considered, then its proposal for 3,200 MW was justified and aligned with future requirements.

Several stakeholders opposed the review petition. They argued that a clarification issued after the original order could not be treated as an “error apparent on the face of the record,” which is the legal requirement for allowing a review petition. Opponents also questioned the financial viability of investing in large coal-based projects when renewable energy and Battery Energy Storage Systems (BESS) are becoming more affordable and widely available.

The Commission also observed inconsistencies in RUVITL’s position regarding state joint venture projects. It noted that unless the state government formally cancels existing Memorandums of Understanding (MoUs) for planned projects, those capacities must continue to be included in future planning calculations.

RERC additionally examined RUVITL’s request for nearly 82 deviations from the Ministry of Power’s Model Bidding Documents. The Commission stated that excessive deviations could reduce competition and increase tariff burdens on consumers. As a result, most of the proposed deviations were rejected, while only a few were partially or fully accepted. The order reinforces the importance of data-based planning, competitive transparency, and balanced long-term energy procurement in Rajasthan.