The Central Electricity Regulatory Commission (CERC) has initiated proceedings on an application seeking amendment of an existing Regulated Tariff Mechanism (RTM) transmission license held by POWERGRID Khavda II-C Transmission Limited, earlier known as POWERGRID KPS3 Transmission Limited.
The application was filed under Section 14 of the Electricity Act, 2003, along with provisions of the CERC Transmission License Regulations, 2024. The company is a wholly owned subsidiary of Power Grid Corporation of India Limited and has requested the inclusion of an additional transmission scheme under its existing license.
The proposed amendment relates to the development of a transmission system to provide connectivity to a 1,100 MW renewable energy project being developed by M/s Sarjan Realties Private Limited at the Khavda Pooling Station-3 (400 kV Section-I) in Gujarat.
According to the details provided by Central Transmission Utility India Limited (CTUIL), the project scope includes the installation of two 400 kV GIS line bays. One bay will be used for connectivity to the Sarjan Realties project, while the other will be kept for future expansion and completion of the diameter. The work will also include around 650 metres of GIS ducting and related civil extension activities.
The estimated cost of the transmission scheme is around Rs. 51 crore. The project is expected to support power evacuation from the renewable energy project and strengthen transmission infrastructure in the Khavda renewable energy zone.
During the proceedings, the Commission was informed about a major corporate restructuring involving the applicant company. The Ministry of Corporate Affairs approved a merger scheme on January 27, 2026, under which 12 Tariff Based Competitive Bidding (TBCB) special purpose vehicles, including POWERGRID KPS3 Transmission Limited, were merged into POWERGRID Khavda II-C Transmission Limited.
Following the completion of necessary filings with the Registrar of Companies in March 2026, POWERGRID KPS3 Transmission Limited ceased to exist as an independent entity. CERC subsequently recorded the change in the company’s name and allowed the license amendment process to continue under POWERGRID Khavda II-C Transmission Limited.
CTUIL supported the application and recommended approval of the license amendment. It informed the Commission that the project qualifies under the policy framework that allows CTUIL to allocate RTM projects costing up to Rs. 100 crore. The transmission scheme was assigned to the company to facilitate connectivity for Sarjan Realties’ hybrid renewable energy project and has a targeted completion period of 24 months from the date of allocation.
However, CERC raised concerns over CTUIL’s failure to comply with earlier directions issued in the proceedings dated June 11, 2026. The Commission had sought clarification from CTUIL regarding delays in filing license applications after project allocation. Expressing dissatisfaction, CERC directed CTUIL to submit a compliance affidavit within one week.
After reviewing the preliminary details, CERC observed that POWERGRID Khavda II-C Transmission Limited is an established inter-state transmission licensee already implementing RTM projects. The Commission found the company eligible to seek the proposed license amendment.
As part of the regulatory process, CERC has directed the publication of a public notice inviting suggestions and objections from stakeholders on the proposed amendment. The deadline for submitting comments has been fixed as August 3, 2026. The matter will be taken up for further hearing on August 4, 2026.
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