CERC Grants Transmission License For 4.5 GW Anantapur-II REZ Evacuation Project

Representational image. Credit: Canva

The Central Electricity Regulatory Commission (CERC) on 31st July 2025 granted a transmission license to Anantapur II REZ Transmission Limited for establishing an inter-State transmission system under the project titled “Transmission System for Evacuation for Integration of Anantapur-II REZ – Phase-I (for 4.5 GW).” This license was granted under Sections 14, 15, and 79(1)(e) of the Electricity Act, 2003, read with the Transmission License Regulations, 2024. The project will be developed on a Build, Own, Operate, and Transfer (BOOT) basis.

The project involves several key transmission elements. The first is the establishment of a large pooling station near Kurnool, Andhra Pradesh. This will include 4×1500 MVA 765/400 kV transformers and 6×500 MVA 400/220 kV transformers, along with associated infrastructure like ICT bays, line bays, reactors, and bus sectionalizers. The pooling station will also include future space provisions for expansion, including additional ICTs and bays.

The second major component is the Ananthapuram-II to Davangere 765 kV double circuit line. This includes 240 MVAr switchable line reactors at the Ananthapuram-II end. Similarly, the third component is the Ananthapuram-II to Cuddapah 765 kV double circuit line with 330 MVAr switchable line reactors at the same end. The fourth element involves a +300 MVAr STATCOM installation at Ananthapuram-II, which will improve voltage stability. All these transmission elements are scheduled to be completed within 24 months from the effective date, targeting 31st March 2027 as the commercial operation date (COD).

The project was awarded through a competitive bidding process managed by PFC Consulting Limited (PFCCL), the Bid Process Coordinator. Resonia Limited emerged as the successful bidder with the lowest annual transmission charges of ₹4,486.42 million.

The Commission initially proposed to grant the license on 28th June 2025 and directed that a public notice be published inviting suggestions or objections. The notice was published in the Times of India and Hindustan newspapers on 2nd July 2025. No objections were received from the public. The hearing was held on 16th July 2025, where the Commission confirmed that the licensee fulfilled all regulatory conditions.

The license is valid for 25 years from the date of issue and comes with several compliance conditions. The licensee must follow the CERC’s Transmission Licence Regulations, not engage in electricity trading, and ensure payment of applicable license fees. They are required to allow non-discriminatory open access and follow performance standards, reporting requirements, and grid codes. Moreover, the EPC contract for the project must be awarded through a competitive bidding process.

The Central Transmission Utility of India (CTUIL), the Central Electricity Authority (CEA), and appointed Independent Engineers will monitor project execution. Any deviation from the schedule will be reported to CERC for necessary action under the terms of the Transmission Service Agreement (TSA).

The CERC has directed that copies of the order be sent to CTUIL, CEA, and PFCCL for further necessary action. With this, Petition stands allowed.


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