The Central Transmission Utility of India Limited (CTUIL), acting as the nodal agency, has released the Transmission Service Agreement (TSA) for the development and operation of an Inter-State Transmission System (ISTS) project aimed at evacuating power from renewable energy projects in the Solapur Special Economic Zone Phase-II in Maharashtra. The project is planned to support the evacuation of 2 GW of renewable energy capacity, along with a network expansion scheme to facilitate power drawl from the Solapur Power Station.
The project will be implemented under the Tariff-Based Competitive Bidding (TBCB) framework. The successful bidder will acquire a Special Purpose Vehicle (SPV) and execute the transmission project on a Build, Own, Operate, and Transfer (BOOT) basis. The project will have an operational life of 35 years from its Commercial Operation Date (COD). At the end of this period, the transmission assets will be transferred to CTUIL or another government-designated agency at zero cost.
The Request for Proposal (RFP) was issued on September 22, 2026. Following the issuance of the Letter of Intent (LOI), the selected bidder will have 10 days to execute the agreement, pay the acquisition price for 100% equity shareholding in the SPV from PFC Consulting Limited, and provide the required initial Contract Performance Guarantee (CPG).
Within five working days of acquiring the SPV, the Transmission Service Provider (TSP) will be required to apply to the Central Electricity Regulatory Commission (CERC) for a transmission licence and tariff adoption. The TSP must also submit a detailed Project Execution Plan, Manufacturing Quality Plan and Field Quality Plan within 120 days from the Effective Date.
Several conditions subsequent must be completed within six months of the Effective Date. These include achieving financial closure, awarding engineering, procurement and construction contracts, and obtaining the necessary regulatory approvals.
The selected bidder is required to furnish an initial CPG of ₹41 crore. The guarantee will initially remain valid until three months after the scheduled COD. If the required conditions subsequent remain incomplete beyond the prescribed period, an additional CPG of ₹4.10 crore per month will be required until compliance is achieved.
The TSA also provides for liquidated damages in case of delays in achieving COD. Delays will attract charges linked to monthly transmission charges, with the applicable rate increasing after the first 60 days, subject to the specified contractual limits.
The project will be required to comply with applicable CERC and Central Electricity Authority regulations and maintain a target transmission system availability of 98% throughout its operating period. Failure to meet contractual obligations, availability requirements or critical timelines could result in invocation of guarantees, intervention in operations, termination of the agreement or other contractual actions.
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