CERC Grants 25-Year Transmission License To POWERGRID Bikaner IV For 6 GW REZ Project In Rajasthan

Representational image. Credit: Canva

The Central Electricity Regulatory Commission (CERC) has approved the grant of a transmission license to POWERGRID Bikaner IV Transmission Limited. The company, previously known as Bikaner A Power Transmission Limited, is a wholly owned subsidiary of Power Grid Corporation of India Limited. The petition was filed under Sections 14 and 15 of the Electricity Act, 2003, and the application complied with the 2024 Transmission Licence Regulations. The approval allows the company to establish a transmission system for the evacuation of 6GW of renewable energy from the Rajasthan Renewable Energy Zone (REZ) Phase-IV, Part 3, under the Build, Own, Operate, and Transfer (BOOT) model.

The transmission system involves establishing a large-scale pooling station at Bikaner, equipped with multiple high-capacity transformers and reactors. The infrastructure includes line bays, interconnections, and provisions for future expansion. Additional components such as STATCOM units, switchable line reactors, and line bays at other substations including Siwani, Fatehabad, and Patran are also part of the project. All transmission elements are expected to be operational simultaneously within 24 months from the date of transfer of the special-purpose vehicle.

The bid for the project was conducted by REC Power Development and Consultancy Limited and Power Grid Corporation of India emerged as the lowest bidder, quoting an annual transmission charge of Rs. 5879.06 million. The CERC initially reviewed the application and published a public notice for any objections or suggestions. The notice was published in both English and Hindi newspapers. No objections were received from the public.

During the hearing on April 23, 2025, the petitioner confirmed that no objections had been filed and requested that the license be granted. The Commission found the petitioner met all regulatory requirements and decided to grant the license. The license will be valid for 25 years unless revoked earlier and can be renewed upon application.

Several conditions are attached to the license. The company must follow all relevant regulations, including those related to standard performance, grid access, and open access to other licensees. It must not engage in electricity trading and must pay license fees on time. Also, the transmission assets cannot be used for any other business without informing the Commission, and if done, revenue-sharing rules must be followed.

The licensee is also required to follow technical standards during the execution of the project and ensure all contracts are awarded through a competitive bidding process. The Central Transmission Utility of India Limited (CTUIL) and the Central Electricity Authority (CEA) will monitor the execution and report any delays or lapses to the Commission. The petitioner is expected to complete the project as per the agreed schedule and follow all regulatory guidelines.

With this order, the petition has been officially approved and closed by the Commission.

 

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