Bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) is soon expected to formally transfer three project SPVs of ISTS-TBCB schemes to their respective winning developers.
According to an informed source, the transfer of the three SPVs, currently wholly-owned subsidiaries of RECPDCL, is expected to take place during the week starting December 23, 2024.
The letters of intent have already been issued to the respective winning developers that were selected under the tariff-based competitive bidding (TBCB) mechanism. These include Adani Energy Solutions Ltd, Power Grid Corporation of India Ltd and debutant Dineshchandra R. Agarwal Infracon Pvt Ltd.
Here are the details:
Project SPV: Rajasthan Part I Power Transmission Ltd (AESL)
Selected developer: Adani Energy Solutions Ltd
Project: Transmission system for evacuation of power from REZ in Rajasthan (20 GW) under Phase III, Part-I
Project SPV: Rajasthan IV 4A Power Transmission Ltd
Selected developer: Power Grid Corporation of India Ltd (PGCIL)
Project: Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part 4: 3.5 GW): Part A
Project SPV: Rajasthan IV 4B Power Transmission Ltd
Selected developer: Dineshchandra R. Agarwal Infracon Pvt Ltd (DRAIPL)
Project: Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part 4: 3.5 GW): Part B
Significantly, the project clinched by AESL involves deployment of HVDC technology, and for DRAIPL, the Rajasthan 4B project marks the EPC company’s entry into the ISTS-TBCB development space.
LoI for Shongtong scheme
It is also learnt that RECPDCL will be soon issuing the letter of intent to PGCIL that has emerged as L1 bidder for an ISTS-TBCB scheme incorporated under “Shongtong Power Transmission Ltd.” This interstate transmission project involves setting up evacuation infrastructure for the upcoming Shongtong Karcham (450 MW) and Tidong (150 MW) hydropower projects in Himachal Pradesh.
FY25 scorecard
According to an analysis done by T&D India, a total of 27 project SPVs corresponding to ISTS-TBCB projects have been formally transferred to winning developers during FY25 so far. Of these, RECPDCL was associated with 16 cases as the bid process coordinator, whereas the remaining 11 were handled by the only other BPC, PFC Consulting Ltd (PFCCL).
Standard practice
Under the TBCB mechanism, whether for interstate or intrastate projects, the bid process coordinator, after completion of the e-reverse auction (e-RA) process, declares the L1 bidder. This is followed by the BPC handing over the letter of intent (LoI) to the winning bidder. The selected bidder then issues a letter of acceptance (LoA) to the BPC, which makes way for the formal transfer of project SPV, which is usually incorporated as a wholly-owned subsidiary of the BPC, to the winning developer.
As per the standard bidding documents, the transfer of project SPV should take place within ten days of issuance of LoI. However, in practice, this usually takes much longer.
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