JSERC Invites Bids To Verify And Value DVC Distribution Assets In Jharkhand

The Jharkhand State Electricity Regulatory Commission (JSERC) has invited bids from independent consultant firms to physically identify, verify, classify, and determine the cost of distribution assets owned by Damodar Valley Corporation (DVC) within Jharkhand. The exercise follows a direction issued by the Appellate Tribunal for Electricity (APTEL) in April 2026 to address regulatory issues arising from DVC’s integrated transmission and distribution network, shared infrastructure, and common accounting system.

DVC’s integrated operations have made it difficult to separately determine the capital base, expenses, revenues, and assets associated with its retail supply business in Jharkhand. JSERC intends to create a clear separation of distribution assets to support transparent and auditable tariff determination in future proceedings.

The selected consultant will undertake the assignment over a period of 90 days, or 12 weeks. The work will begin with a review of applicable regulatory requirements and the development of an asset classification framework. The consultant will also collect relevant operational and financial information required for the exercise.

As part of the network assessment, the consultant will review existing GIS databases, single-line diagrams, and other technical records. It will map electricity flows from sources to consumers and establish functional boundaries between generation, transmission, and distribution assets.

The consultant will also apply the four-factor test specified by APTEL for asset classification. The assessment will consider network topology, the purpose and consumer reach of an asset, redundancy, and voltage levels. This approach is intended to classify assets according to their actual function rather than their existing nomenclature.

Physical verification will form another major part of the assignment. The consultant will conduct field visits to major substations, feeding points, and facilities where infrastructure may serve multiple functions. The findings from the field assessment will be reconciled with available technical and financial records.

The assignment will also include a financial carve-out of DVC’s distribution business in Jharkhand. The consultant will establish a separate Fixed Asset Register for distribution assets, determine the applicable capital base, and prepare an editable Aggregate Revenue Requirement (ARR) model. The model is expected to support JSERC in future tariff proceedings.

JSERC issued the RFP on September 12, 2026. The pre-bid meeting is scheduled for September 18, while proposals must be submitted by October 3 at 5:00 PM. Technical proposals will be opened on October 5, followed by financial proposals on October 9. The Letter of Award and commencement of work are scheduled for October 12.

Eligible firms must be registered companies or LLPs in India for at least four financial years ending March 31, 2026. Applicants must have an average annual turnover of at least ₹50 crore during the last three financial years and at least one relevant power-sector restructuring, unbundling, or PPP advisory assignment during the previous five years. Firms must also have at least 50 dedicated power-sector professionals on their payroll.

JSERC will select the consultant through a Quality-cum-Cost Based Selection process, with 80% weightage for the technical proposal and 20% for the financial bid.