NCT approves TBCB route for Rs 100 billion interstate transmission projects

The National Committee on Transmission (NCT), in its 22nd meeting on August 23, 2024, recommended the tariff-based competitive bidding (TBCB) route for four interstate transmission system (ISTS) schemes, with a total project outlay exceeding Rs 100 billion. These projects are aimed at strengthening India’s power transmission infrastructure, particularly for renewable energy zones and green hydrogen production areas.

The first scheme focuses on the augmentation of transformation capacity at the Bidar pooling station in Karnataka, with a cost of Rs 2.88 billion and a gestation period of 24 months. The second scheme involves the transmission system for supplying power to green hydrogen and ammonia manufacturing facilities in Mundra, Gujarat, with an estimated cost of Rs 28.17 billion and a completion timeline of 36 months.

The third scheme aims to integrate 4.5 GW of renewable energy from the Anantapur-II Renewable Energy Zone in Andhra Pradesh. This project is estimated to cost Rs 46.79 billion and is set to be completed within 24 months. The fourth scheme is for the transmission system supporting green hydrogen and ammonia projects in Tuticorin, Tamil Nadu. It has a project outlay of Rs 26.17 billion, with a gestation period of 30 months.

As schemes #2, #3, and #4 involve costs exceeding Rs 5 billion, they will require final clearance from the Union Power Ministry. In contrast, the NCT’s clearance is considered final for the first scheme. As of the NCT meeting, 44 ISTS-TBCB schemes were in various stages of bidding, with PFCCL managing 27 and RECPDCL handling 17. Bid evaluation was underway for 13 schemes. Additionally, three schemes had reached the stage where a bidder had emerged or a letter of intent was issued, though the transfer of the special purpose vehicle (SPV) was still pending. Power Grid Corporation of India Ltd (PGCIL) was associated with two of these projects, while Tata Power was the developer for the third.