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CTU notifies indicative capital costs for dedicated transmission systems

Author: PPD Team Date: December 23, 2025

The Central Transmission Utility (CTU) has notified the indicative capital cost for various configurations of dedicated transmission systems. The document, titled Indicative Capital Cost of Dedicated Transmission Systems, provides standard reference costs for dedicated transmission lines and reactive power equipment to support planning and cost sharing among developers, lenders, and utilities. The CTU has clarified that these are indicative benchmarks and not fixed tariffs, and that Right of Way costs are excluded.

For 220 kV systems, the indicative costs vary by circuit type, conductor configuration, and wind zone. A 220 kV single circuit line using Single Moose conductor in Wind Zone 4 is estimated at Rs 1.10 crore per km, while a single circuit line using Single AL59 Zebra conductor in Wind Zone 5 is estimated at Rs 1.14 crore per km. For double circuit lines, costs range from Rs 1.30 crore per km for Single Moose in Wind Zone 4 to Rs 1.55 crore per km in Wind Zone 5. A double circuit line using Single AL59 Zebra in Wind Zone 4 is estimated at Rs 1.80 crore per km. Multi-circuit 220 kV lines show higher costs, with Rs 2.50 crore per km for Single Moose in Wind Zone 4 and Rs 3.45 crore per km for AL59 Moose in Wind Zone 3.

For 400 kV transmission lines, the CTU has provided indicative costs for the Twin Moose conductor configuration in Wind Zone 4. A 400 kV single-circuit line is estimated at Rs 1.59 crore per km, a double-circuit line at Rs 2.41 crore per km, and a multi-circuit line at Rs 6.04 crore per km, reflecting the higher complexity and material requirements at this voltage level.

The notification also covers indicative capital costs for reactive power equipment, including bus reactors and line reactors. Bus reactors may be installed at generation switchyards to supplement generator reactive power capability, provided that switching does not cause steady-state voltage variations exceeding 5 per cent. Line reactors may be required where charging of an Extra High Voltage line would otherwise exceed permissible voltage limits and may be switchable, controlled, or fixed.

Indicative costs for shunt reactors are provided per MVAr at the 33 kV level for Static VAR Generator type equipment. A 40 MVAr reactor is estimated at Rs 4.51 lakh per MVAr, a 50 MVAr reactor at Rs 6.55 lakh per MVAr, and a 60 MVAr reactor at Rs 7.11 lakh per MVAr. These figures include applicable taxes and duties.

The CTU has emphasised that the costs are indicative and tentative in nature. Actual project costs will depend on detailed surveys, terrain conditions, final technical specifications, and market rates at the time of execution. The exclusion of Right of Way costs remains a significant variable, particularly for projects passing through densely populated or agricultural areas. The tables provided are not exhaustive, and the notification addresses only capital expenditure, not operating costs or transmission charges.

The notification is issued under Para (1)(g) of the Modalities of Solar Hour Access and Non-Solar Hour Access, read with Regulation 5.11(g) of the General Network Access Regulations, 2022.

The featured photograph is for representation only.

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