The Rajasthan Electricity Regulatory Commission (RERC) has issued a major order regarding the capital investment plan of Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN) for the financial year 2026-27. RVPN had initially filed its petition in December 2025 seeking approval for investments worth ₹6,340 crore under the applicable investment approval regulations. Later, the utility submitted a revised proposal, increasing the total investment requirement to ₹6,500 crore to include additional power transmission schemes linked to state budget announcements and urgent grid development needs.
The proposal underwent an extensive regulatory review process involving public consultations, technical assessments, and stakeholder participation. Public notices were published in leading newspapers, following which several consumer groups, industry participants, and power sector stakeholders raised concerns and objections related to the proposed investments.
One of the key concerns highlighted during the hearings was the delay in completion of several major transmission projects initiated by RVPN over the past decade. Stakeholders argued that many approved projects were still incomplete and questioned the need for fresh large-scale investments when the utility had reportedly utilized less than half of its previously approved capital expenditure budget by the end of 2025. Consumer representatives also cautioned that excessive capital approvals could increase transmission tariffs and create an additional financial burden on electricity consumers across the state.
The hearings also focused heavily on the technical justification for modernization projects proposed by RVPN. The transmission utility defended its plan to replace old static relays with modern numerical distance and differential protection systems, along with the upgradation of Substation Automation Systems (SAS). Some stakeholders argued that such upgrades should be treated as routine operation and maintenance expenses rather than capital investments. However, RVPN maintained that these systems are long-term strategic assets essential for improving grid security, monitoring disturbances, and ensuring reliable transmission operations.
RVPN further justified the need for capacity expansion projects, including the installation of 500 MVA transformers in renewable-rich regions such as Bhadla and Ramgarh. According to the utility, these investments are necessary to meet Rajasthan’s rapidly rising peak power demand and support the evacuation of growing renewable energy generation capacity.
A significant regulatory issue also emerged regarding the execution model for large transmission projects under the RERC Tariff Regulations, 2025. The regulations recommend that large intra-state transmission projects crossing specified cost thresholds should be developed through Tariff Based Competitive Bidding (TBCB) instead of the traditional Regulated Tariff Mechanism (RTM). This issue became particularly important during the review of the proposed 765 kV Hindaun substation upgrade connected to the Kawai-Kalisindh-Chhabra thermal corridor.
After detailed examination, the Commission ruled that interconnected transmission elements cannot be split into smaller independent projects under RTM merely to avoid competitive bidding requirements. Finally, balancing grid reliability, consumer interest, and regulatory compliance, the RERC approved investments worth ₹6,312.20 crore against RVPN’s revised proposal of ₹6,500 crore. The Commission also granted in-principle approval for asset hypothecation to secure loans up to ₹6,108.32 crore for funding the approved projects.
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