CERC Orders Grant Of Transmission Licence To Adani Transmission

Central Electricity Regulatory Commission (CERC) ordered on June 16 the grant of transmission licence to Khavda-Bhuj Transmission Limited  subject to fulfillment of 14 conditions under the monitoring eyes of Central Electricity Authority which will bring to the notice of the Commission any lapse on the part of the licensee. Owned by Adani Transmission, Khavda-Bhuj Transmission Limited was incorporated to establish Transmission System for “Transmission scheme for evacuation of 3GW RE injection at Khavda P.S. under Phase-I”. The Project involves laying of ~220 ckm of transmission line. The project will help evacuate about 3 GW of renewable energy from Khavda, Gujarat. The project will help shape one of the country’s largest solar and wind farms. The work involves estsblishment of 3 x 1500 MVA 765/400 kV Khavda (GIS) and a Khavda PS – Bhuj PS 765 D/C line in Gujarat,

A three judge panel of I. S. Jha, Arun Goyal and P. K. Singh expressed satisfaction that the petitioner Khavda-Bhuj meets the requirements to establish “Transmission Scheme for evacuation of 3 GW RE injection at Khavda P.S. under Phase-I”, on Build, Own, Operate and Maintain basis subject to the fulfilment of the conditions.

Khavda-Bhuj Transmission Limited, moved the Commission for grant of transmission licence to establish “Transmission Scheme for evacuation of 3 GW RE injection at Khavda P.S. under Phase-I” (hereinafter referred to as “Transmission System” or “Project”) on Build, Own, Operate and Maintain (BOOM) basis.

The petitioner had emerged as the successful bidder with the lowest levelized transmission charges of Rs.1000.33 million per annum. The Commission, in its order dated 29.4.2022, prima facie proposed to grant transmission license to the petitioner and directed it to file an affidavit to the effect that the execution of the transmission project shall not be delayed due to time taken in obtaining statutory clearances required under Request for Proposal (RfP) and the Transmission Service Agreement (TSA).

In an affidavit dated 11.5.2022, the firm submitted its compliance following which CERC directed that the firm, bound by the commitment, was to submit information with regard to quality control mechanism available. Also that the petitioner shall provide monthly progress report along with likely completion date of each element of the Project and its likely execution to Central Electricity Authority and Central Transmission Utility of India Ltd (CTUIL). The random inspection may be carried out by CEA and CTUIL as and when deemed necessary.

The CERC ordered the CEA and CTUIL to devise, if necessary, a mechanism for random inspection of the project every three months to ensure that the project is not only being executed as per the schedule, but the quality of equipment and workmanship of the project conform to the technical standards and grid standards notified by CEA and IS specifications. Called out for virtual hearing on 14.6.2022 through video conferencing, the petitioner submitted the information called for, followed by the CERC order on June 16.