PGCIL’s Gujarat Subsidiary Gets Transmission License for 2 GW of Renewable Projects


The Central Electricity Regulatory Commission (CERC) has given transmission license to Powergrid Bhuj Transmission Limited (PBLT) to build transmission systems for 2 GW of renewable energy projects in Gujarat.

The PBLT, a subsidiary of the Power Grid Corporation of India Limited (PGCIL), had filed a petition with the Commission for the projects at Bhuj-II in the state on a build, own, operate, and maintain basis. It sought for the Commission to grant the transmission license so it can establish a transmission system for the project.

The PGCIL had emerged as the winner in the competitive bidding process conducted by PFC Consulting Limited in and had quoted the lowest levelized transmission charges of ₹1.23 billion (~$16.7 million) per annum.

In its response, the Commission said that in a previous order, it had directed the PBLT to issue a notice inviting suggestions or objections from the public regarding the approval of the requested transmission license. It noted that the petitioner did not receive any suggestions or objections in response to the notice.

In its order, it allowed for the transmission license while noting that the license would be granted subject to the fulfillment of certain conditions throughout the license period. Some of the most noteworthy conditions are:

Additionally, the CERC also directed the Central Electricity Authority (CEA) to monitor the project execution and inform the Commission of any lapse on the part of the licensee to meet the schedule for further appropriate action per the provisions of the act and transmission license regulations.

Previously, the Power Grid Corporation of India Limited won two contracts to set up the transmission infrastructure to evacuate power generated from renewable projects. PGCIL emerged as the successful bidder under a tariff-based competitive bidding process to establish the transmission system, and the letters of intent have also been issued.

Earlier, Mercom reported that PGCIL could monetize its transmission line towers by offering it to mobile telecom service providers on commercial basis under section 41 of the Electricity Act, 2003, which allows for effective utilization of assets to benefit the society at large, a committee constituted by the Central Electricity Regulatory Commission (CERC) said in its recommendation.


Nithin Thomas Prasad