Omnicore Weekly #253 - 3 April 2026

Dear Patrons & Readers, 

Approval under Section 62 read with Section 79(1)(d) of the Electricity Act, 2003 and under Regulation 15(1)(a) and Regulation 23 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 2023 for truing up of Transmission Tariff for 2019-24 tariff period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 and determination of the Transmission Tariff for the 2024-29 tariff period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024 for Asset-1: 765 kV D/C Srikakulam-Angul Transmission Line under “Common System associated with East Coast Energy Private Limited and NCC Power Projects Limited LTOA Generation Projects in Srikakulam Area-Part-A” in the Southern Region and Eastern Region.

Power Grid Corporation of India Limited,

Versus

Tamil Nadu Generation and Distribution Corporation Limited,  Kerala State Electricity Board Limited & 18 Others

Background:

The instant Petition has been filed by Power Grid Corporation of India Limited, for truing up of the transmission tariff for the 2019-24 period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 (hereinafter referred to as “the 2019 Tariff Regulations”) and determination of the transmission tariff for the 2024-29 period under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024 (hereinafter referred to as “the 2024 Tariff Regulations”) in respect of 765 kV D/C Srikakulam-Angul Transmission Line (hereinafter referred to as “the transmission assets”) under “Common System associated with East Coast Energy Private Limited and NCC Power Projects Limited LTOA Generation Projects in Srikakulam Area-Part-A’’ (hereinafter referred to as “the transmission project”) in the Southern and the Eastern Region.

2. The Petitioner has made the following prayers in the instant Petition:

a) Approve the trued-up Transmission Tariff for 2019-24 block and transmission tariff for 2024-29 block for the assets covered under this petition, as per para 18 and 19 above.

b) Admit the capital cost claimed, and additional capitalization incurred during 2019-24 and projected during 2024-29.

c) Allow the petitioner to recover the shortfall or refund the excess Annual Fixed Charges, on account of Return on Equity due to change in applicable Minimum Alternate/Corporate Income Tax rate as per the Income Tax Act, 1961 (as amended from time to time) of the respective financial year directly without making any application before the Commission as provided in Tariff Regulations 2019 and Tariff Regulations, 2024 as per para 18 and 19 above for respective block.

d) Approve the reimbursement of expenditure by the beneficiaries towards petition filing fee, and expenditure on publishing of notices in newspapers in terms of Regulation 94 (1) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024, and other expenditure (if any) in relation to the filing of petition.

e) Allow the petitioner to bill and recover RLDC fees & charges and Licensee fee separately from the respondents in terms of Regulation 94 (3) and (4) Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024.

f) Allow the petitioner to bill and adjust impact on Interest on Loan due to change in Interest rate on account of floating rate of interest applicable during 2024-29 period, if any, from the respondents.

g) Allow the petitioner to file a separate petition before the Commission for claiming the overall security expenses and consequential IOWC on that security expenses as mentioned at para 25 above.

h) Allow the petitioner to file a separate petition before the Commission for claiming the overall insurance expenses and consequential IOWC on that insurance expenses as mentioned at para 25 above.

i) Allow the petitioner to file a separate petition before the Commission for claiming the overall capital spares at the end of tariff block as per actual as mentioned at Para 25 above.

j) Allow the petitioner to claim expenses of CTUIL borne by POWERGRID through a separate petition as mentioned at para 26 above.

k) Allow the Petitioner to bill and recover GST on Transmission Charges separately from the respondents, if GST on transmission is levied at any rate in future. Further, any taxes including GST and duties including cess etc. imposed by any statutory/Govt./municipal authorities shall be allowed to be recovered from the beneficiaries.

and pass such other relief as the Commission deems fit and appropriate under the circumstances of the case and in the interest of justice.

3. The brief facts of the case are as under:

a. The Petitioner was entrusted with the implementation of the transmission project, and the same was discussed and agreed in the 30th SCM of the Southern Region Constituents held on 13.4.2020. Further, it was discussed and ratified by SRPC in its special meeting held on 25.11.2010. The transmission project was also discussed and agreed in the meeting of the Standing Committee of Eastern Region constituents held on 28.12.2010. The Investment Approval (IA) for the transmission project was accorded by the Board of Directors (BOD) of the Petitioner (in its 272nd meeting held on 29.5.2012) vide Memorandum No. C/CP/LTA Srikakulam Part-A dated 4.6.2012, at an estimated cost of ₹190921.00 lakh, including an Interest During Construction (IDC) of ₹11594.00 lakh, based on the February 2021 price level. The scope of works under the transmission project are as under:

Transmission Line:

Srikakulam Pooling Station-Angul 765 kV D/C line (upgraded to 765 kV line from 400 kV line).

Sub-Stations:

• Establishment of 765 kV Pooling Station at Srikakulam (initially charged at 400 kV); and

• Extension of 765/400 kV Angul Sub-station with provision of 1x1500 MVA 765/400 kV transformer.

Reactive Compensation

Line Reactors (400 kV)

80 MVAR line reactors with 800 ohms NGR at each end of both circuits of Srikakulam Pooling Station-Angul 765 kV D/C line (initially charged at 400 kV) (Switchable line reactor at Srikakulam Pooling Station end). Bus Reactors (400 kV) 1x80 MVAR 400 kV bus reactor at 765/400 kV Srikakulam Pooling Station.

b. Subsequently, the BOD of the Petitioner (in its 339th meeting held on 29.3.2017), vide Memorandum Ref. No. C/CP/PA1617-03-0V-RCE010 dated 31.3.2017 approved the Revised Cost Estimate (RCE) at ₹143897.00 lakh, including an IDC of ₹17180.00 lakh (based on August 2016 price level) with the revised scope of work. The broad revised scope of work of the transmission project are as follows:

Transmission Line

Srikakulam Pooling Station-Angul 765 kV D/C line

(Note: the transmission system inter-alia comprised establishment of 765/400 kV pooling station at Srikakulam, where power from IPPs shall be pooled and transmitted to various beneficiaries through Srikakulam Pooling Station-Angul 765 kV D/C line under the project. The entire system was to be initially operated at 400 kV (under Part-A) and to be upgraded to 765 kV at a later date (under Part-C). However, due to changed load generation scenario in Southern Region (SR) it was agreed to operate the Srikakulam-Angul 765 kV D/C line at its rated voltage of 765 kV right from the beginning. Accordingly, 400 kV elements including reactors and associated switchgear at both Srikakulam and Angul Sub-stations got deleted from the earlier approved scope of the project. However, cost towards preliminary survey, Land acquisition, R&R compensation and cost of civil works have been retained under the present project i.e. Srikakulam-Part-A and the same are not covered under SrikakulamPart-C of the scheme).

c. Further, the BoD of the Petitioner company in its 374th meeting held on 6.3.2020, vide Memorandum Ref. No. C/CP/PA1920-12-0AI-RCE009 dated 16.3.2020 accorded approval of RCE-II amounting to ₹148418.00 lakh including an IDC of ₹16771.00 lakh based on August 2016 price level.

d. The entire scope of the transmission project is covered under the instant Petition.

e. The transmission tariff for the transmission asset for the 2014-19 tariff period was allowed vide order dated 19.7.2018 in Petition No. 230/TT/2016.

f. The scheduled date of commercial operation (SCOD) of transmission asset was 29.5.2015. The transmission asset was put into commercial operation on 1.2.2017 with a time over-run of 20 months, 03 days which was condoned by the Commission vide order dated 19.7.2018 in Petition No. 230/TT/2016.

g. The Commission vide order dated 3.12.2021 in Petition No. 134/TT2020 had trued-up the transmission tariff for the 2014-19 period and determined the transmission tariff for the 2019-24 tariff period in respect of transmission asset.

4. The Respondents are the Distribution Licensees, Transmission Licensees, and Power Departments, mainly beneficiaries of the Southern and Eastern Region, which are procuring transmission services from the Petitioner.

5. The Petitioner has served a copy of the Petition on the Respondents, and the notices regarding the filing of this Petition have been published in the newspapers in accordance with Section 64 of the Electricity Act, 2003 (hereinafter referred to as “the Act”). No comments or suggestions have been received from the general public in response to the aforesaid notices published in the newspapers by the Petitioner. None of the Respondents have filed reply in the matter despite opportunity.

6. The hearing was held on 13.1.2026, and the order was reserved. This order is being passed considering the submissions made in the Petition vide affidavit dated 30.11.2024 and subsequent affidavit dated 27.1.2026.

7. Having heard the Petitioner’s representatives and perused the material available on record, we proceed to dispose of the Petition in the succeeding paragraphs.