The Central Electricity Regulatory Commission (CERC) has approved a petition filed by Raghanesda RE Transmission Limited (RRETL) to create a security interest over its project assets for raising finance for its transmission project in Gujarat. The order was issued on July 7, 2026, by a bench comprising Chairperson Shri Jishnu Barua and Members Shri Ramesh Babu V., Shri Harish Dudani, and Shri Ravinder Singh Dhillon.
RRETL had received a transmission licence in October 2025 to develop an inter-State Transmission System on a Build, Own, Operate, and Transfer (BOOT) basis. The project aims to evacuate 3 GW of renewable energy from the Raghanesda region of Gujarat, supporting the integration of clean energy into the national power grid.
To finance the development and construction of the project, RRETL secured a rupee term loan of Rs 1,959.84 crore from a consortium comprising IDBI Bank Limited, Bank of Maharashtra, and India Infrastructure Finance Company Limited. The total project cost has been assessed at Rs 2,546.23 crore, with the remaining Rs 586.39 crore being contributed by the project promoter.
As part of the financing arrangement, IDBI Trusteeship Services Limited has been appointed as the Security Trustee to hold the security interest on behalf of the lending institutions. RRETL approached the commission under Sections 17(3) and 17(4) of the Electricity Act, 2003, seeking approval to create a security over its assets in favour of the lenders.
The proposed security includes a first charge through a mortgage over all immovable assets of the project, a first charge on movable assets, current assets, and intangible assets, along with a pledge of 51% of the promoter’s equity shareholding in the company.
After reviewing the petition, the commission observed that creating security over project assets is a common financing practice that helps lenders reduce credit risk. It also noted that such an arrangement is permitted under the Transmission Service Agreement signed by RRETL. Accordingly, the CERC approved the creation of the security interest through hypothecation of assets and the proposed share pledge. The commission also directed the company to submit a signed copy of the Indenture of Mortgage immediately after its execution.
At the same time, the CERC clarified that its approval does not permit the transfer or assignment of the transmission licence to the Security Trustee or any lender-appointed nominee without prior approval from the commission. If the company defaults on loan repayment, any transfer of the licence will require a joint application from the licensee, lenders, the Security Trustee, and the proposed nominee. The commission stated that it would examine the technical capability of the proposed entity before approving any transfer to ensure uninterrupted operation and maintenance of the transmission project. With these directions, the commission disposed of Petition No. 199/MP/2026.
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