The Central Electricity Regulatory Commission (CERC) has issued its order on Petition No. 75/AT/2025 concerning the adoption of transmission charges for the Pune-III Transmission Limited project. The case revolves around the establishment of an inter-state transmission system for the evacuation of 7 GW of renewable power from the Khavda region in Gujarat under Phase IV, Part D, on a Build, Own, Operate, and Transfer (BOOT) basis. Pune-III Transmission Limited, which was incorporated by PFC Consulting Limited (PFCCL), was later acquired by the successful bidder through a tariff-based competitive bidding process.
The process began with the publication of the Request for Proposal (RfP) on October 19, 2023, and submission of bids on April 19, 2024. Technical bids were opened the same day, followed by the opening of financial bids on September 25, 2024. The e-reverse auction concluded on September 28, 2024, after 178 rounds, showing active participation from three bidders: Adani Energy Solutions Limited, Power Grid Corporation of India Limited, and Sterlite Grid 21 Limited. The final transmission charges discovered were ₹5,892.41 million per annum, with Adani Energy Solutions Limited emerging as the lowest bidder.
Originally, the Cost Committee had estimated the project cost at ₹3,381.28 crore, leading to a levelised tariff of ₹4,560.78 million per annum as per CERC norms. However, bidders had quoted higher charges due to revised Right of Way (RoW) guidelines issued by the Government of Gujarat and later by the Ministry of Power, which significantly increased compensation rates. Additionally, omissions in the initial cost estimation, changes in land value, and the application of a completion factor for cost escalation over the project timeline led to a reassessment. On June 5, 2025, the Cost Committee revised the estimated project cost to ₹4,021.28 crore, acknowledging corrections like loop-out line length, updated RoW costs, and escalation factors.
With these revisions, the updated computation showed that the discovered tariff was about 11.24% higher than CERC’s normative tariff. Despite this, the Bid Evaluation Committee (BEC) certified that the bidding process was transparent, competitive, and in compliance with the Ministry of Power’s guidelines. The Commission agreed, observing that the competitive environment and revised cost assumptions justified the outcome.
The Letter of Intent was issued to Adani Energy Solutions Limited on October 21, 2024. The company provided a performance guarantee of ₹70 crore and acquired Pune-III Transmission Limited on November 19, 2024. Subsequently, it filed the petition for adoption of the tariff, which has now been approved by the CERC. The Commission adopted the annual transmission charges of ₹5,892.41 million per annum, which will remain valid for the duration of the Transmission Service Agreement.
The order also directed PFCCL, as the Bid Process Coordinator, to ensure greater clarity and precision in drafting future committee minutes. Transmission charges will be shared by designated interstate transmission system customers as per the 2020 CERC regulations. With this, Petition No. 75/AT/2025 has been formally disposed of, paving the way for the execution of this major transmission project that will support renewable energy integration into the national grid.
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