The board of Power Grid Corporation of India Ltd (PGCIL), in a recent meeting, accorded investment approval for the proposed transmission line that the Central PSU would be constructing for Reliance Industries Ltd (RIL) in Gujarat.
The dedicated transmission line connecting RIL’s Jamnagar petroleum refinery to Jam Khambaliya ISTS pooling station is estimated to cost Rs.327.71 crore and is scheduled to commission by September 2023.
Background
It may be recalled that in January 2022, Central Electricity Regulatory Commission (CERC) gave Reliance Industries Ltd (RIL) the option of approaching Power Grid Corporation of India Ltd (PGCIL) for constructing a dedicated power transmission line associated with Reliance’s petroleum refinery in Gujarat.
The detailed order by CERC was based on recommendations of Central Transmission Utility of India Ltd (CTUIL) and the Western Region Power Committee. Both these entities were deliberating on the issue ever since RIL first formally sought the dedicated line in around October 2020.
Reliance Industries Ltd was seeking a dedicated transmission line connected to the ISTS (interstate transmission system) to source 500 mw of renewable energy-based electricity, which the company would like to use to meet its renewable purchase obligations (RPO).
The company has a petroleum refinery located Jamnagar in Gujarat. This refinery, with a total load of 1,450 mw, is equipped with a 1,750-mw captive power plant.
The overall project involves a 400kV double-circuit dedicated transmission line (of 60 km or 120 ckm) connecting the existing Jam Khambaliya pooling substation of ISTS. Besides, there will be a 2×250 MVA, 400/220kV substation at the Jamnagar refinery end. This substation will be then connected at four locations, through underground cables, to the existing 220kV captive power grid already present at the Jamnagar refinery complex.
The Legalities
There were several provisions in the existing regulatory framework. Among the important one is that since RIL was seeking 500 mw of power, a quantum that exceeds the minimum 100 mw, it qualifies as a “bulk consumer”. Hence, connectivity per se, could be granted. However, since RIL is a bulk consumer and not a power utility/generator itself, RIL is not eligible to “plan” the transmission line. Such planning of ISTS-based lines is done by CTUIL. On its part, however, CTUIL approved the development of such a dedicated line.
The remaining question is that of construction of the dedicated line. Since RIL is a bulk consumer and not a transmission licensee itself, it cannot construct the line on its own.
CERC had given RIL two options. First, it could form a special purpose vehicle (SPV) that can apply for transmission licence. This subsidiary can build the dedicated transmission line, and the financials (transmission charges) can be worked out between RIL and the SPV. Second, RIL can approach any existing transmission licensee – PGCIL or any other licensee – that can build the dedicated line. The cost of the line, of course, will be borne by RIL.
Also read: PGCIL Plans JV For Intrastate Network Upgrade
Under PGCIL’s ownership
In a meeting held in October 2021, RIL showed inclination to pursue the PGCIL route for the dedicated line as the project implementation could be fast-tracked. It should be noted that though RIL will be bearing the expenses of constructing the line, the asset will be owned by PGCIL. The payment security mechanism and transmission charges will be worked out between RIL and PGCIL.
(Featured photograph (source: KEC International) is for representation only)
