The National Committee on Transmission (NCT) has granted extension in completion timelines to Power Grid Corporation of India Ltd (PGCIL) with respect to projects implemented under the regulated tariff mechanism (RTM) route.
This extension has been granted specifically for relatively smaller value projects assigned by Central Transmission Utility of India Ltd (CTUIL) to PGCIL on RTM basis.
It may be mentioned that CTUIL is empowered to autonomously clear projects of estimated cost less than Rs.100 crore without the concurrence of higher authorities like National Committee on Transmission (NCT) or the Union power ministry.
NCT, in its latest meeting, has granted a three-month extension in completion of RTM projects, as per the following:
- Bay extension works: 18 months (earlier: 15 months)
- ICT augmentation works: 21 months (earlier: 18 months)
- GIS extension works: 24 months (earlier: 21 months)
This extension was granted based on implementation challenges highlighted by PGCIL during the NCT meeting. Some of the key challenges mentioned by PGCIL included low bidder participation for such RTM projects, compressed timeline in CTUIL Office Memorandum (OM) and high lead time for ICT/reactor manufacturing.
CTUIL-approved RTM projects are small (less than Rs.100 crore), which limits bidder participation, especially when projects are located in remote locations. It becomes difficult to implement projects that are approved in compressed timeframe due to limited engagement of potential bidders, despite multiple efforts on the part of PGCIL, it was informed.
Clearance process
It may be noted that ISTS projects costing up to Rs.100 crore can be cleared autonomously by CTUIL. Those costing between Rs.100 crore and Rs.500 crore are approved by National Committee on Transmission (NCT). Projects costing above Rs.500 crore are recommended by NCT to the Union power ministry for final approval. Project approval also includes the mode of implementation – whether TBCB or RTM. It may also be mentioned that CTUIL deals with RTM projects as project costing less than Rs.100 crore are, in normal course, not considered for development under the TBCB route.
CTUIL OM
According to information available with T&D India, CTUIL, in its latest Office Memorandum (OM) dated January 21, 2025, cleared nine projects, each costing less than Rs.100 crore, to be implemented under the RTM route. Eight of these were assigned to PGCIL or its TBCB subsidiaries.
Featured photograph (source: MPPTCL) is for representation only
