The Rajasthan Electricity Regulatory Commission (RERC) has approved an investment plan worth Rs. 6,312.20 crore for Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN) for the financial year 2026-27. The order was issued by the Commission bench comprising Chairman Dr. Rajesh Sharma and members Hemant Kumar Jain and Vijay Pal Singh after detailed hearings and scrutiny conducted earlier this year. RVPN had initially sought approval for a capital expenditure plan of Rs. 6,340 crore, which was later revised to Rs. 6,500 crore through an interlocutory application following new state budget announcements and additional system requirements. After examining the proposal and stakeholder submissions, the Commission approved a slightly lower amount with certain modifications and disallowances.
The approved investment plan is aimed at strengthening and modernizing Rajasthan’s transmission infrastructure to support growing electricity demand and improve grid reliability across the state. Under the sanctioned plan, RVPN will establish 30 new 220 kV grid substations with a combined capacity of 5,040 MVA during 2026-27. In addition, the utility plans to commission 28 new 132 kV substations with a total capacity of 2,050.50 MVA. The transmission expansion program also includes the construction of 1,918.60 circuit kilometers of 220 kV transmission lines and 2,127.77 circuit kilometers of 132 kV lines. Apart from these projects, the Commission approved an allocation of Rs. 700 crore for capacity augmentation works in the existing transmission network.
During the regulatory proceedings, several objections and suggestions were submitted by stakeholders and consumer representatives, including Sh. G.L. Sharma and Sh. D.D. Agarwal. The stakeholders expressed concern over delays in projects approved in earlier financial years and argued that excessive capital expenditure could eventually increase the burden on electricity consumers through higher tariffs. Questions were also raised regarding technical planning practices and the inclusion of certain administrative and technology-related expenditures under capital investment proposals.
After reviewing these concerns, the Commission disallowed multiple expenditure items proposed by RVPN. A budget allocation of Rs. 44 crore for projects under the Power System Development Fund (PSDF) was rejected as the schemes had not yet received approval from the Government of India. The Commission also denied approval for Rs. 6 crore meant for procurement of numerical distance and differential relays, along with Rs. 10 crore proposed for upgrades of existing Substation Automation Systems (SAS). According to the Commission, such technology improvements should be treated as regular Operation and Maintenance (O&M) expenditure instead of capital expenditure.
The order also introduced several accountability measures for RVPN. The utility has been directed to maintain a detailed Transformer Movement Register to track asset utilization and movement. Further, all project reports must now receive approval from RVPN’s internal boards before being submitted to the Commission. RERC also granted in-principle approval to RVPN for hypothecation of assets to secure institutional loans worth Rs. 6,108.32 crore for financing the approved transmission projects.
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