The Maharashtra Electricity Regulatory Commission (MERC) has approved an annual transmission charge of ₹1,445.56 million for a major power evacuation project aimed at strengthening renewable energy transmission infrastructure in Dharashiv and Beed districts of Maharashtra.
The approval was issued under Case No. 48 of 2026 for NES Dharashiv Transmission Limited, a special purpose vehicle acquired by Montecarlo Limited through a tariff-based competitive bidding process. The project will be developed on a Build-Own-Operate-Transfer (BOOT) basis and is designed to support intra-state power evacuation.
The scheme includes the development of a 400 kV Washi substation, along with associated transmission lines and bays. The project was initially conceptualised by the Empowered Committee in January 2025 and was later approved by the Maharashtra government. PFC Consulting Limited served as the bid process coordinator.
The competitive bidding process began with a global tender issued in May 2025. Five companies submitted technical bids, including Power Grid Corporation of India, Adani Energy Solutions, Resonia Limited, Maharashtra State Electricity Transmission Company Limited (MSETCL), and Montecarlo Limited.
Montecarlo emerged as the successful bidder following a 37-round electronic reverse auction. The company quoted the lowest final annual transmission charge of ₹1,445.56 million, which was subsequently placed before MERC for approval.
The approved tariff is around 15.34% higher than MERC’s normative benchmark of ₹1,253.20 million per year. According to the Bid Evaluation Committee, the higher cost is primarily linked to environmental and statutory requirements.
Around 42 kilometres of the project’s 186-kilometre transmission corridor passes through designated Great Indian Bustard wildlife habitats. This requires specialised construction measures, environmental compliance and additional statutory clearances, resulting in costs that were not fully reflected in the initial estimates.
During the proceedings, Brihanmumbai Electric Supply and Transport (BEST) raised objections over the non-execution of transmission service agreements by individual long-term utility beneficiaries. It argued that project costs should be recovered directly from the beneficiaries.
MERC rejected the contention, noting that state policy assigns MSETCL the responsibility of executing transmission service agreements on behalf of utilities. The commission also observed that the project is intended to strengthen the wider grid and facilitate renewable energy evacuation. Therefore, the transmission charges will be recovered through the pooled transmission cost mechanism under applicable state regulations.
MERC confirmed that the competitive bidding process complied with the central government’s guidelines under Section 63 of the Electricity Act, 2003. However, the commission clarified that full tariff recovery will begin only after the commercial operation date of the complete transmission system.
The project is scheduled to achieve commercial operation within 24 months. MERC also advised MSETCL to improve future cost-estimation methods by accounting more accurately for environmental restrictions, right-of-way requirements and location-specific project costs.
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