Central Electricity Regulatory Commission (CERC) has ruled that the additional component of an 80 MVAR reactor associated with the Warora-Kurnool transmission scheme may come up under the regulated tariff mechanism (RTM) mode, though the original project is being developed in the TBCB modality.
In a very recent order, CERC ruled that the project developer Warora Kurnool Transmission Ltd (WKTL), a subsidiary of Adani Transmission Ltd, can develop the additional component under the RTM route, as a special case.
The scope of the additional component is officially termed as “one spare unit (1-phase) of 80 MVAR reactor at 765kV Warangal (New) substation, along with necessary arrangement to take the spare reactor units into service as per the operational requirement.”
This project segment is scheduled to commission within 15 months from the issue of Office Memorandum (OM) by Central Transmission Utility of India Ltd (CTUIL).
This additional component, aimed at enhancing stability of the overall transmission scheme, was mooted at a meeting of the Southern Regional Power Committee in August 2021. The project, in its entirely, entails setting up of 765kV transmission infrastructure spread across Andhra Pradesh, Maharashtra and Telangana.
In October 2021, a meeting of the National Committee on Transmission (NCT) suggested that this additional component should be done by the transmission service provider who owns the Warangal (New) substation, which in this case, is Warora Kurnool Transmission Ltd. This would be subject to the suggestion of the Ministry of Power, NCT had said.
However, NCT, it may be mentioned is allowed to deliberate on ISTS project costing between Rs.100 crore and Rs.500 crore. This scheme is estimated to cost Rs.5.50 crore, which is why NCT does not come into the picture. CTUIL is the entity responsible for clearing ISTS projects costing up to Rs.100 crore, under intimation to NCT and the Union power ministry. It may be mentioned that ISTS schemes costing over Rs.500 crore need clearance from the power ministry. (Read more)
In November 2011, CTUIL recommended that transmission licence be granted to WKTL to develop the additional component under RTM route.
Though WKTL does not technically fulfill the conditions for grant of transmission licence under the RTM route, CERC, using its “power to relax” has considered this as a fit case for granting transmission licence under RTM route.
As part of the standard procedure, WKTL will now need to file a public notice inviting comments from the general public. If no adverse comments or objections are received, the matter will proceed to determination of tariff.
Project Background
The Warora-Kurnool transmission scheme was originally awarded to Essel Infraprojects Ltd in March 2016. Subsequent to agreements formalized in March 2021, this project was acquired by Adani Transmission Ltd for a consideration of around Rs.3,370 crore. The project has been significantly delayed from its original completion schedule for a variety of reasons. However, post acquisition by Adani Transmission, construction activity has revived. In April 2021, WKTL placed an order worth Rs.477 crore on KEC International for completion of balance works. (Read more).
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