BERC Approves Capital Investment For Six BGCL Transmission Schemes With Regulatory Conditions In Bihar

The Bihar Electricity Regulatory Commission (BERC) has issued an order on the work-wise and scheme-wise capital investment plan submitted by Bihar Grid Company Limited (BGCL), approving investments across six transmission infrastructure schemes subject to regulatory conditions. The petition sought prior approval for projects involving metering infrastructure, civil works, substation automation, control centre development, 33kV bays and rooftop solar installations.

BGCL had claimed a total investment of Rs. 59.36 crore across the six schemes. The Commission assessed the proposed expenditure and approved eligible capital costs while directing the company to exclude recurring operation and maintenance expenses from capital expenditure. It also specified requirements for project documentation, commissioning and future capitalization.

For the procurement of Availability-Based Tariff (ABT)-compliant interface energy meters and associated infrastructure, BGCL sought approval for Rs. 22.27 crore. BERC approved Rs. 14.34 crore, excluding Rs. 7.93 crore towards the Annual Maintenance Contract (AMC). The Commission directed that the AMC expenditure be claimed under operation and maintenance or repair and maintenance expenses during subsequent true-up proceedings instead of being included in capital investment.

The Commission also examined BGCL’s proposal for additional civil works. Against the company’s claim of Rs. 27.29 crore, BERC approved Rs. 21.39 crore, noting that detailed project reports (DPRs) were available only for the approved amount. The remaining Rs. 5.90 crore was not approved at this stage. BGCL will be required to submit a separate petition for the balance expenditure after finalising the relevant DPRs and obtaining the necessary board approvals.

Among the new infrastructure proposals, BERC approved Rs. 12.60 crore for upgrading the existing Substation Automation System (SAS) under Phase-IV, Part-I projects. The Commission also approved Rs. 6.68 crore for establishing a Centralised Control Centre (CCC) at Bihar Grid. These projects are intended to strengthen transmission system monitoring, automation and operational coordination.

For the upgradation and construction of 33kV bays, BGCL had requested Rs. 3.20 crore. The Commission approved Rs. 2.63 crore after excluding Rs. 0.57 crore identified as an operation and maintenance component. Separately, the proposed supply and installation of a 325 kW rooftop solar power system across 11 gas-insulated switchgear (GIS) substations received approval for the full estimated cost of Rs. 1.72 crore.

BERC has attached compliance requirements to the approved investments. BGCL must submit approved DPRs for specified projects with its next tariff filing and ensure that recurring operational expenses are not capitalised. The Commission has also clarified that investment approval does not automatically permit capitalization.

Capitalization will be considered only after the assets are commissioned, completion certificates are submitted and prudence checks are undertaken during future tariff proceedings. The order establishes a framework for BGCL to proceed with eligible transmission infrastructure investments while ensuring expenditure transparency and regulatory oversight.