A transmission licensee may create security interests over project assets to secure financing, but the assignment of the transmission license to a lender's nominee requires prior approval from the Commission to verify the nominee's technical competence.

In the matter of Petition seeking approval under Section 17 (3) and (4) of the Electricity Act, 2003 for bringing on record the appointment of IDBI Trusteeship Services Limited – Respondent No. 2 as a Security Trustee and for creation of security interest by way of hypothecation over the assets of Petitioner and pledge of 51% equity share capital of the Petitioner held by the promoter in favour of the IDBI Trusteeship Services Limited – Respondent No. 2 acting on behalf of and for the benefit of the lenders – Respondent Nos. 3 to 5 (and for any subsequent transferees, assign, novatees thereof and any refinancing lenders to the Project), pursuant to the Facility Agreement dated 20.03.2026, the Security Trustee Agreement dated 20.03.2026, the unattested Deed of Hypothecation dated 20.3.2026 and Agreement for Pledge of Shares dated 20.3.2026, Sponsor’s Undertaking dated 20.3.2026 and other financing agreements, for the development of the Transmission Project.

And

In the matter of

Raghanesda RE Transmission Limited, 161, 1st Floor, Vardhman Crown Mall, Sector-19, Dwarka, New Delhi - 110075. … Petitioner

Parties present:

Shri Tabrez Malawat, Advocate, RRETL

Ms. Ankita Bafna, Advocate, RRETL

Shri Sourajit Sarkar, Advocate, RRETL

Shri Syed Hamza, Advocate, RRETL

Ms. Rupali Jain, Advocate, RRETL

Shri Varun Sharma, RRETL

Shri Biswas Ranjan Barik, RRETL

Shri Romichand Rajput, RRETL

Shri Prasun Tiwari, RRETL

ORDER

The Petitioner, Raghanesda RE Transmission Limited (hereinafter referred to as “the Petitioner/RRETL”), has been granted a transmission licence under Section 14 of the Electricity Act, 2003 (‘the Act’) to develop the inter-State Transmission System, viz. “Transmission System for Evacuation of RE Power from Raghanesda Area of Gujarat – 3 GW under Phase - I” (hereinafter referred to as “Transmission Project”) on a Build, Own, Operate and Transfer (BOOT) basis, the details of which are specified in the schedule attached to the license issued vide Order dated 24.10.2025 in Petition No. 725/TL/2025. The Commission adopted the competitively discovered levelised tariff of Rs. 2,328.71 million per annum for the Project vide Order dated 17.10.2025 in Petition No. 724/AT/2025.

2. The Petitioner has filed the present Petition for approval for the creation of a security interest over the Petitioner’s assets, including all movable and immovable assets, in favour of Respondent No. 2, IDBI Trusteeship Services Limited acting as the Security Trustee for the benefit of the lenders, namely Respondent Nos. 3 to 5, i.e., IDBI Bank Limited, Bank of Maharashtra, and India Infrastructure Finance Company Limited, including their successors, transferees, novatees, assigns and any refinancing lenders, for a sum of Rs. 1,959.84 crore. The Petitioner has made the following prayers:

(a) “Admit and list the present Petition for an urgent hearing;

(b) Allow the present Petition;

(c) Grant approval under Section 17 (3) and (4) of the Electricity Act, 2003 for the creation of security interest, by way of hypothecation over the movable and immovable assets of the Petitioner and pledge of 51% equity share capital of the Petitioner held by the promoter, to the extent and in the manner mentioned in the Facility Agreement dated 20.03.2026, the Security Trustee Agreement dated 20.03.2026, the unattested Agreement for Pledge of Shares dated 20.03.2026, the unattested Deed of Hypothecation