Chandigarh STU proposes Rs 158 crore transmission upgrade plan
The State Transmission Utility (STU) of Chandigarh has submitted a five-year business plan before the Joint Electricity Regulatory Commission (JERC), proposing capital expenditure of Rs 158.34 crore on new substations, underground cabling and transmission upgrades aimed at improving grid reliability and meeting rising electricity demand.
The filing marks the first business plan submitted after the STU was formally notified on January 31, 2025 following privatisation of Chandigarh’s power distribution operations.
Key infrastructure projects
The proposal includes construction of new grid substations at Sector-34 and the old Diesel Power House site in Sector-26 at an estimated cost of Rs 12 crore and Rs 18 crore respectively.
The STU has also proposed underground transmission links from the 220/66 kV GIS substation at Hallomajra to Raipur Kalan, Sector-34, Sector-17, Sector-47 and Sector-26 using 1000 mm² XLPE cables to improve network reliability and reduce weather-related disruptions.
Other projects include replacement of ageing transformers at the BBMB substation at a cost of Rs 21.5 crore and upgrading of 66 kV conductors on the Dhulkote-BBMB line costing Rs 20 crore.
The overall plan envisages addition of 60 MVA transmission capacity during the control period.
Consumer impact and funding
According to the filing, the proposed upgrades are expected to improve voltage stability, reduce outages and strengthen alternate supply arrangements through additional feeder connectivity from the Hallomajra substation.
The STU has proposed funding the projects through a 70:30 debt-equity ratio and may also seek financial assistance from the Power System Development Fund (PSDF).
The utility has set a target to reduce transmission losses from 5.80% to 5.20% by FY 2029-30 while maintaining transmission system availability above 94%.
SLDC proposal
Separately, the State Load Despatch Centre (SLDC) has proposed an additional investment of Rs 48 crore for construction of a new building and establishment of Supervisory Control and Data Acquisition (SCADA) infrastructure for real-time grid monitoring and control.
The SLDC currently operates with 15 employees against a central guideline requirement of 62 personnel for an “emerging SLDC.”
The proposals are now under consideration of JERC, with implementation expected in phases from FY 2026-27 if approved.
The featured photograph is for representation only.
