CERC Approves Revised Transmission Tariff For PGCIL’s Green Energy Corridors Project

The Central Electricity Regulatory Commission (CERC) has approved the revised transmission tariff for Power Grid Corporation of India Limited (PGCIL) for the Green Energy Corridors–Inter State Transmission Scheme (ISTS) Part-B covering the Western and Northern Regions. The order was issued on June 30, 2026, under Petition No. 752/TT/2025. It includes the true-up of transmission charges for the 2019–24 tariff period and the approval of transmission tariffs for the 2024–29 period.

PGCIL had filed the petition under the Electricity Act, 2003, seeking approval for the transmission tariff of several combined assets developed under the Green Energy Corridors project. These include the Chittorgarh–Ajmer 765 kV double-circuit transmission line, the Banaskantha–Chittorgarh 765 kV transmission line, the Banaskantha–Sankhari 400 kV transmission line, along with associated substations, transformers, reactors and transmission bays. These transmission assets have been developed to strengthen the electricity network and support the integration of renewable energy across the Western and Northern regions of India.

The Commission noted that the project was originally approved in April 2015 with an estimated cost of around ₹3,705.61 crore. While one of the assets was commissioned within the scheduled timeline, the remaining two assets were delayed by 319 days and 346 days before they became operational in March 2019. Earlier tariff orders had already been issued for these assets, and the present petition focused on revising the approved capital cost based on the actual expenditure incurred during project execution.

After reviewing the submissions made by PGCIL, the Commission approved a revised opening capital cost of ₹2,955.40 crore as of April 1, 2019. It also allowed additional capital expenditure of ₹188.28 crore incurred during the 2019–24 tariff period. As a result, the total approved capital cost of the combined transmission assets increased to ₹3,143.67 crore as of March 31, 2024. During the review, the Commission also examined issues related to initial spares, additional capitalisation, debt-equity ratio, and depreciation before finalising the revised figures.

Based on the revised capital cost, CERC approved the trued-up Annual Fixed Charges for the 2019–24 tariff period. The approved annual charges range from around ₹421.12 crore for 2019–20 to about ₹429.22 crore for 2023–24. These charges cover depreciation, return on equity, interest on loans, operation and maintenance expenses, and interest on working capital.

For the 2024–29 tariff period, the Commission approved an opening capital cost of ₹3,143.67 crore. It also allowed additional capital expenditure of ₹12.96 crore, mainly towards undischarged liabilities related to works completed before the cut-off date. The approved annual transmission charges for the new control period are expected to range from ₹420.26 crore to ₹406.58 crore, reflecting a gradual decline in loan-related expenses over the years.

The Commission further allowed PGCIL to recover filing fees, publication expenses, Regional Load Despatch Centre charges, licence fees and other admissible expenses from beneficiaries in line with the applicable tariff regulations. It also permitted adjustments related to income tax, interest on loans, GST, and other statutory levies wherever applicable. With this order, CERC has finalised the transmission tariff for the Green Energy Corridors project, providing cost recovery for the transmission assets while supporting the expansion of reliable infrastructure needed for renewable energy integration across India.