PFC Consulting Limited, a wholly owned subsidiary of Power Finance Corporation Limited, has released a Request for Proposal (RFP) on May 5, 2025, for selecting a bidder to act as a Transmission Service Provider (TSP) for the establishment of the Inter-State Transmission System titled “Transmission System for Kurnool-IV REZ – Phase-II (3 GW).” This project is to be developed through a Tariff-Based Competitive Bidding (TBCB) process following guidelines set by the Government of India under Section 63 of the Electricity Act, 2003.
The scope of the project includes significant augmentation of transmission infrastructure at Kurnool-IV and the development of a new 765/400 kV Shadnagar station. Key components include ICTs of various voltage capacities, multiple 220kV and 400kV line bays, bus couplers, and bus sectionalizers. The timeline for completing these components ranges from 24 to 30 months from the effective date.
The Ministry of Power notified PFCCL as the Bid Process Coordinator via a Gazette Notification dated March 27, 2025. The transmission scheme was also endorsed during the 36th CMETS-SR meeting held on December 19, 2024, and in a special SRPC meeting on February 4, 2025. The National Committee on Transmission approved it on March 6, 2025.
The RFP document was made available for purchase starting May 5, 2025, and can be acquired until July 7, 2025. The deadline for bid submission is July 8, 2025, at 3:00 PM IST. Technical bids will be opened on the same day at 3:30 PM IST.
The bidding process involves a single-stage, two-envelope system conducted electronically via the MSTC platform. Technical and financial capabilities are key criteria, with the financial bid comprising an initial and a final offer through an e-reverse auction.
The selected bidder will acquire 100% equity of the Special Purpose Vehicle (SPV under incorporation, which will implement the project on a build, own, operate, and transfer basis. After 35 years from the Commercial Operation Date (COD), the project assets must be transferred to the Central Transmission Utility or a successor entity at zero cost, free of encumbrances, within 90 days.
Important financial terms include the requirement of a Bid Bond of ₹43.40 crore and a non-refundable RFP purchase fee of ₹5,00,000 plus 18% GST. The selected bidder must also furnish a Contract Performance Guarantee (CPG) whose terms are detailed in the RFP.
All interested parties must ensure full compliance with the RFP’s eligibility and submission criteria to qualify for the bid. This project is a crucial part of the government’s broader initiative to integrate renewable energy zones, supporting the national goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.
