Delhi’s Power Development Fund to Finance Transmission Systems That Ease Congestion

The amount of grant will depend on the strategic importance and the size of the project


Transmission systems aimed at easing congestion in intra-state transmission systems can now receive funding from the Power System Development Fund (PSDF) of Delhi, according to a newly released Delhi Electricity Regulatory Commission (DERC) draft regulations, 2019.

As per the regulations, the development fund will be constituted and will be credited towards deviation settlement charges, reactive energy charges, or any other charges notified by the DERC from time to time. The fund will be maintained and operated by State Load Dispatch Center (SLDC), Delhi.

The regulations also instruct that this fund can only be utilized for certain purposes. For example- transmission systems of strategic importance, installation of shunt capacitors, series compensators and other reactive energy generators, special protection schemes, pilot and demonstrative projects, and renovation and modernization (R&M) of Delhi’s transmission system.

Apart from this, the fund can also be utilized for the projects proposed by distribution utilities in the areas which are incidental to intra-state transmission system and have a bearing on grid safety and security. It makes clear that the distribution licensee will not be eligible for assistance from this development fund.

The priority will be given to those programs which addresses grid security concerns, have national or multi-utility importance, or inter-state in nature, while disbursing the funds.

Here are some of the other features of the regulation –

  • The load dispatch center of Delhi will be the nodal agency for the implementation of this program and will act as secretariat to the monitoring committee and the appraisal committee, prepare a detailed procedure for release and disbursement from the fund, keep the record of business transacted at each meeting, and prepare an annual report.
  • Appraisal committee will be constituted under the chairmanship of the DERC chairperson and include Managing Director of DelhiTransco Ltd (DTL) and Executive Director of SLDC.
  • Monitoring Committee will be constituted under the chairmanship of the Power Secretary and include representatives from the Department of Power, Department of Finance, and DERC.
  • The Monitoring Committee will consider projects for approval based on the recommendation of the Appraisal Committee.
  • The funding will be made available as a grant, subject to the availability of funds. The amount of grant will depend on the strategic importance and the size of the project.
  • The project entity should be responsible for the execution as well as the operation and maintenance (O&M) of the projects during its useful life.
  • The state power committee, state transmission utility, distribution licensees of Delhi, SLDC, power exchanges will be the implementing agencies.

These regulations will come into force from the date of their publication in the official gazette.

Recently, DERC also issued draft regulations for the implementation of renewable purchase obligation (RPO) and renewable energy certificate (REC) framework.

Nitin is a staff reporter at and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer