UERC Approves INR 10.40 Crore Transformer Upgrade For Garhwal Power Network In Uttarakhand

The Uttarakhand Electricity Regulatory Commission (UERC) has granted in-principle investment approval to Power Transmission Corporation of Uttarakhand Limited (PTCUL) for strengthening the power transmission network in the Garhwal region. The approval, issued on August 18, 2026, covers an estimated investment of ₹10.40 crore, including Interest During Construction, for installing two new 7.5 MVA, 66/33 kV transformers at substations in Karanprayag and Kothiyalsain.

PTCUL had initially sought approval for ₹11.31 crore based on its Detailed Project Report (DPR). The project is aimed at improving the reliability of electricity supply in Chamoli district, which includes important pilgrimage destinations such as Badrinath Dham and Hemkund Sahib. The area currently relies heavily on a radial 66 kV transmission network connected to the 132 kV Srinagar substation.

At Karanprayag, the substation has one operational 7.5 MVA transformer, a 5 MVA unit and a 3 MVA transformer that has been non-functional for several years. The 3 MVA unit, installed in 1938, will be dismantled and replaced with a new 7.5 MVA transformer. The existing 7.5 MVA transformer has also been assessed to be in unsatisfactory condition, resulting in restrictions on its loading.

At Kothiyalsain, the substation currently has only one 7.5 MVA transformer. The addition of another 7.5 MVA unit, along with associated outdoor switchyard equipment, is expected to provide greater operational flexibility and reduce the risk of supply interruptions during maintenance or equipment failures.

The upgrades are primarily intended to meet N-1 contingency requirements, under which the system should continue supplying electricity even if one transformer becomes unavailable. The project will also address rising electricity demand in the region. Power demand is projected to increase by around 5% annually due to growing tourism, residential and commercial consumption, and development associated with the Rishikesh-Karanprayag Railway Project. During FY 2025-26, transformer loading reached 65% at Karanprayag and 98% at Kothiyalsain.

The project will be financed through a 70:30 debt-equity structure. The Government of Uttarakhand will provide the equity contribution in phases, while the remaining 70% will be financed through loans from financial institutions.

While approving the investment, UERC reduced the proposed project cost from ₹11.31 crore to ₹10.40 crore. The Commission removed a 6.8% price contingency and retained 3% general contingency and 5% project overheads.

UERC has directed PTCUL to undertake competitive bidding, submit loan sanction documents after approval by lenders, and comply with all statutory safety requirements. The final project expenditure will also be subject to prudence checks during future Annual Revenue Requirement proceedings.