The Central Electricity Regulatory Commission (CERC) has adopted an annual transmission tariff of ₹1,010.34 million, or approximately ₹101.03 crore, for an inter-state transmission project being developed to evacuate power from the Mahan Energen Limited Generating Station in Madhya Pradesh.
The order was passed by a four-member CERC bench headed by Chairperson Jishnu Barua. The transmission project will be implemented on a Build, Own, Operate and Transfer (BOOT) basis by POWERGRID Mahan Rewa Transmission Limited.
The project involves construction of a 149.87-kilometre 400 kV double-circuit transmission line connecting the existing Mahan bus to the Rewa substation. It will also include two 400 kV line bays at the Rewa end. The estimated capital cost of the project is ₹7,025.2 million, or around ₹702.52 crore.
The transmission system is scheduled to be commissioned within 30 months from the transfer of the Special Purpose Vehicle (SPV), with the targeted operational date set for December 4, 2027.
The project was awarded through a tariff-based competitive bidding process conducted by PFC Consulting Limited (PFCCL), which acted as the Bid Process Coordinator. PFCCL initiated the global tender process in September 2024, with MEL Power Transmission Limited established as the SPV for implementing the project.
Four companies, including Power Grid Corporation of India Limited (PGCIL), Adani Energy Solutions Limited, Megha Engineering & Infrastructures Limited and G R Infraprojects Limited, submitted their initial technical and financial bids.
An e-reverse auction conducted in March 2025 continued for 86 rounds. PGCIL emerged as the lowest bidder after reducing its initial annual tariff offer of ₹1,253.50 million to ₹1,010.34 million. The company subsequently received the Letter of Intent.
On June 4, 2025, PGCIL completed the acquisition of 100% equity in the project SPV through performance guarantees worth ₹110 million. The SPV was subsequently renamed POWERGRID Mahan Rewa Transmission Limited.
During the regulatory proceedings, CERC noted that the final bid tariff was 12.06% higher than the estimated levelised tariff of ₹901.59 million per year calculated under CERC norms.
PFCCL attributed the higher tariff to site-specific engineering and construction challenges. Around 65% of the transmission line route passes through undulated terrain, requiring approximately 40% more angle towers. In addition, a 21.83-kilometre section passes through reserve forest areas, requiring tower spans to be reduced from 400 metres to 300 metres.
Dense population centres and Right-of-Way constraints in the Singrauli region also contributed to higher project costs.
CERC accepted the technical justifications and adopted the annual transmission tariff. The tariff will remain applicable for the entire duration of the Transmission Service Agreement, while recovery and sharing of transmission charges will be governed by the commission’s applicable inter-state transmission regulations.
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