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2025 Supreme(Online)(CERC) 161
CENTRAL ELECTRICITY REGULATORY COMMISSION
Shri Jishnu Barua, Chairperson, Shri Ramesh Babu V., Member, Shri Ravinder Singh Dhillon, Member
POWERGRID KPS 1 and 2 Augmentation Transmission Limited – Appellant
Versus
Central Transmission Utility of India Limited – Respondent
Petition No. 350/TL/2025
For the Appellant: Shri Rohit Jain, Shri Ranjeet S. Rajput, Shri Swapnil Verma
For the Respondents: None
Compliance with regulatory requirements and bidding processes under the Electricity Act is essential for granting transmission licences.
Headnote:(A) Electricity Act, 2003 - Sections 14 and 15 - Application for grant of a transmission licence - A wholly owned subsidiary of Power Grid Corporation of India Limited seeks a transmission licence for establishing an inter-State transmission system for augmentation of transformation capacity - All procedural requirements have been fulfilled and CTUIL has recommended the grant of the licence - Public notice to invite objections to be published. (Paras 1-4, 15, 24, 25)
(B) Regulatory Compliance - Compliance with guidelines for competitive bidding as specified by the Ministry of Power - The bid process was followed, resulting in Power Grid Corporation of India Limited being selected as the lowest bidder for the project - Transparency and compliance with the Electricity Act are confirmed. (Paras 7, 8, 10, 19, 23)
Facts of the case:
The petitioner filed a request for a transmission licence to augment transformation capacity at two substations, KPS1 and KPS2. The application followed competitive bidding in accordance with the guidelines issued by the Ministry of Power. The petitioner also addressed procedural delays in the filing of the petition.
Findings of Court:
The Commission prima facie concluded that the petitioner satisfied the conditions for granting the inter-State transmission licence. A public notice will be issued to invite suggestions or objections before the final decision.
Issues: The key questions involve confirming compliance with procedural aspects and transparency in the bidding process.
Ratio Decidendi: The court emphasized adherence to regulatory frameworks and procedural correctness in granting licences under the Electricity Act, confirming that compliance and competition guidelines were strictly followed.
Result: The application for a transmission licence is granted subject to public notice inviting suggestions and objections.
| Table of Content |
|---|
| 1. petitioner applying for a transmission licence. (Para 1 , 2 , 3 , 4) |
| 2. regulatory compliance affirmed. (Para 5 , 24) |
| 3. public notice to be issued for suggestions. (Para 6 , 7 , 25 , 26) |
| 4. competitive bidding followed correctly. (Para 8 , 9 , 10 , 11 , 19) |
ORDER
The Petitioner, POWERGRID KPS 1 and 2 Augmentation Transmission Limited (erstwhile Khavda V-B1B2 Power Transmission Limited), has filed the present Petition for the grant of a transmission licence under Sections 14 and 15 of the Electricity Act, 2003 (hereinafter referred to as “the Act”) read with the Central Electricity Regulatory Commission (Procedure, Terms, and Conditions for grant of Transmission Licence and other related matters) Regulations, 2024 (hereinafter referred to as “the Transmission Licence Regulations”) to establish the inter-State transmission system for “Augmentation of transformation capacity at KPS1 (GIS) and KPS2 (GIS) (Phase-V Part B1 and Part B2 scheme)” (hereinafter referred to as “the Project”) on a Build, Own, Operate and Transfer basis, consisting of the following elements:
* As per TSP (M/s Khavda-Bhuj Transmission Limited) mail dated 14.6.2024, half dia has been considered for 765 kV ICT bay due to space constraint.
Note:
i. TSP of KPS1 (M/s Khavda-Bhuj Transmission Limited) shall provide space for above augmentation works at KPS1 (Section-II)
ii. TSP of KPS2 (KPS2 Transmission Limited (POWERGRID)) shall provide space for above augmentation works at KPS2 (Section-I)
2. The Petitioner has made the following prayers:
“a) Grant Transmission Licence to the Applicant; and
b) Allow the sharing and recovery of Transmission Charges for Inter-State Transmission System for “Augmentation of transformation capacity at KPS1 (GIS) and KPS2 (GIS) (Phase-V Part B1 and Part B2 scheme)” as per Sharing of Inter-state Transmission Charges and Losses CERC Regulations 2020 and any other amendment thereon issued from time to time by CERC.
c) Pass such other order / orders, as may be deemed fit and proper in the facts & circumstances of the case.”
Hearing dated 30.4.2025
3. Notice was issued to the parties to file the reply and rejoinder. During the course of the hearing, the representative of the Petitioner submitted that there was a delay of 10 days in filing the instant Petition due to the non-reflection of the filing fees on the e-portal, and accordingly, prayed to condone the said delay.
4. Vide Record of Proceedings (“RoP”) for the hearing dated 30.4.2025, CTUIL was directed to furnish the details of the inter-connecting upstream and downstream transmission systems, as well as the details of connectivity and GNA granted and/or applications received at KPS1 (GIS) and KPS2 (GIS).
5. CTUIL, in compliance with the RoP dated 30.4.2025, vide affidavit dated 26.5.2025, has submitted as under:
i) Details of the inter-connecting upstream/downstream transmission system are as below:
Upstream Transmission System
• Khavda Phase-V Part B1 scheme would facilitate immediate injection of about 810MW power from AGEL generation projects (Refer to the table below) at KPS1 (Sec-II) in order to maintain N-1 compliance of 765/400kV ICTs.
• Khavda Phase-V Part B2 scheme would facilitate immediate injection of about 600MW power from the GIPCL generation project (Refer to the table below) at KPS2 (Sec-I) in order to maintain N-1 compliance of 765/400kV ICTs.
Downstream transmission System:
• For onwards evacuation of power from above generation projects linked with Khavda Phase-V (Part B1 and Part B2 scheme), Khavda Phase-I to V schemes would be required. However, as per early requirement indicated by associated generation projects for injection of power, the subject ICTs would facilitate immediate injection of power at KPS1 & KPS2, even though the transmission system for onward evacuation of power under GNA would come later.
ii) The details of the connectivity / GNA granted and / or applications received at KPS 1 (Sec-II) & KPS 2 (Sec-I) as per the following table, with relevant do
