CERC Approves ₹4,486.42 Million Annual Tariff For Anantapur-II REZ Transmission Project

Representational image. Credit: Canva

The Central Electricity Regulatory Commission (CERC) has issued an order in response to a Petition filed by Anantapur II REZ Transmission Limited. The petition sought approval for adopting transmission charges determined through a transparent tariff-based competitive bidding process. The project in question is the “Transmission System for Evacuation for Integration of Anantapur-II REZ-Phase-I (for 4.5 GW),” which will be developed on a Build, Own, Operate and Transfer (BOOT) basis.

The Bid Process Coordinator for this project was PFC Consulting Limited (PFCCL), which was notified by the Ministry of Power on 12 September 2024. The bidding process followed all necessary guidelines and procedures laid out by the central government under Section 63 of the Electricity Act, 2003. The bidding began with a global invitation for qualification published on 15 October 2024 and concluded with the issuance of the Letter of Intent on 19 February 2025. The final step, the transfer of the Special Purpose Vehicle (SPV), was completed on 31 March 2025.

Three major bidders—Power Grid Corporation of India Limited, Resonia Limited (formerly Sterlite Grid 32 Limited), and Adani Energy Solutions Limited—participated in the initial bidding. The process culminated in an e-reverse auction held over 79 rounds on 13 and 14 February 2025. Resonia Limited emerged as the lowest bidder with a quoted annual transmission charge of ₹4,486.42 million. This bid was found to be 0.40% lower than the levelized tariff of ₹4,504.30 million per annum calculated as per CERC norms. The bid was verified and approved by the Bid Evaluation Committee (BEC), which also certified the transparency and fairness of the bidding process.

The scope of work includes establishing a major pooling station at Ananthapuram-II near Kurnool, Andhra Pradesh, and constructing 765 kV double-circuit transmission lines to Davanagere and Cuddapah. The project also involves the installation of 330 MVAr and 240 MVAr switchable line reactors, as well as a +300 MVAr STATCOM for voltage regulation and stability enhancement. The scheduled completion time for the project is 24 months from the effective date, targeting 31 March 2027.

Following the transfer of the SPV and submission of the required documents by the successful bidder, the petition for adoption of the tariff was filed on 7 April 2025. The Commission has now approved and adopted the discovered tariff of ₹4,486.42 million per annum. This tariff will apply throughout the period defined in the Transmission Service Agreement (TSA), and the sharing of transmission charges among the designated interstate transmission system (ISTS) customers will be governed by the CERC regulations of 2020.

The petition has been formally disposed of, with the directive that a copy of the order be sent to the nodal agency, Central Transmission Utility of India Limited (CTUIL).

 

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