Central Electricity Regulatory Commission (CERC) has adopted the transmission charges associated with the ISTS-TBCB scheme being developed by Navinal Transmission Ltd, a subsidiary of Adani Energy Solutions Ltd (AESL).
In a recent order, CERC approved and adopted the single annual transmission charge of Rs.2,987.14 million that was discovered through the competitive bidding process.
The ISTS-TBCB project housed under “Navinal Transmission Ltd” is termed as “Network expansion scheme in Navinal (Mundra) area of Gujarat for drawl of power in the area” and is expected to commission by July 2026. With an estimated cost of Rs.1,853 crore, the project seeks to develop, among other elements, a 4×1,500MVA, 765/400kV GIS substation at Navinal (near Mundra) in Gujarat.
Adani Energy Solutions Ltd (AESL) won the project getting the better of two other contenders – Power Grid Corporation of India Ltd (PGCIL) and Sterlite Power.
Aggressive bidding
According to information available, the project witnessed aggressive bidding during the e-reverse auction (e-RA) that took place on August 21, 2024.
Based on the initial price bids, PGCIL was L1 with a bid of Rs.4,210.00 million with AESL placed L2 with Rs.4,221.30 million. The e-RA saw as many as 137 rounds of bidding at the end of which AESL emerged L1 with a bid of Rs.2,987.14 million while PGCIL ended L2 with a quote of Rs.2,994.63 million.
Thus it can be seen that AESL downwardly revised its initial price bid by as much as 29.2 per cent in clinching Navinal Transmission.
Similar was the case with another ISTS-TBCB scheme housed under “Jamnagar Transmission Ltd” that was a initially a four-way contest between AESL, PGCIL, Sterlite Power and Reliance Industries Ltd (RIL). This was incidentally the first time that RIL was seen participating in the field of power transmission development.
AESL won the project with a final price bid of Rs.3,917.57 million outbidding PGCIL (the L2 bidder) at the end of the e-RA. Based on initial price bids, PGCIL was L1 with a bid of Rs.5,109.30 million while the final winner AESL was L3 with a quote of Rs,6,213.30 million. In winning this project, AESL lowered its initial price bid by as much as 37 per cent.
It is interesting to note that RIL was placed L2 based on initial price bids and ended L3 at the close of the e-RA process. Sterlite Power that was placed L4 with respect to its initial price bid did not participate in the e-reverse auction.
RIL, it may be mentioned, very recently received the letter of intent for developing an ISTS-TBCB scheme “Lakadia B Power Transmission Ltd” making the Mukesh Ambani-controlled entity’s debut in the power transmission development space. (Read full story here.)
SPV transfer
Both Navinal Transmission Ltd and Jamnagar Transmission Ltd were acquired by AESL on October 14, 2024. It may be mentioned that AESL formally acquired “Rajasthan Part I Power Transmission Ltd,” its largest power transmission scheme very recently, on January 20, 2024.
Featured photograph is for representation only.
