Case Overview
Petitioner: POWERGRID Chitradurga Bellary Transmission Limited (formerly Chitradurga Bellary REZ Transmission Limited, a wholly owned subsidiary of PGCIL)
Subject: Application under Sections 14 and 15 of the Electricity Act, 2003 read with CERC Transmission Licence Regulations, 2024 for grant of inter-State transmission licence
Order Date: 31st August 2025
Coram: Chairperson Jishnu Barua, Members Ramesh Babu V., Harish Dudani, and Ravinder Singh Dhillon
Transmission Project Details
Project: Transmission scheme for integration of Davanagere/Chitradurga Renewable Energy Zone (REZ) and Bellary REZ in Karnataka on Build, Own, Operate and Transfer (BOOT) basis
A. Davanagere / Chitradurga REZ Scheme (Scheduled COD: 21.03.2027)
- Establishment of 765/400 kV Pooling Station with 4×1500 MVA ICTs and 4×500 MVA ICTs
- Loop-in Loop-out (LILO) of Narendra (New) – Madhugiri 765 kV D/C line with switchable line reactors
- Installation of 2×330 MVAr bus reactors at Davanagere/Chitradurga
- Upgradation of Narendra (New) – Madhugiri 765 kV D/C line to full 765 kV rating
- Upgradation of Madhugiri Pooling Station with 3×1500 MVA ICTs and 2×330 MVAr reactors
B. Bellary REZ Scheme (Scheduled COD: 21.09.2027)
- Establishment of 400/220 kV Bellary Pooling Station with 4×500 MVA ICTs
- Construction of Bellary – Davanagere/Chitradurga 400 kV D/C line
- Installation of 2×125 MVAr bus reactors at Bellary Pooling Station
Tariff and Bidding Details
Bid Process Coordinator: PFC Consulting Limited
Successful Bidder: Power Grid Corporation of India Limited (PGCIL)
Discovered Annual Transmission Charges (ATC): ₹3,958.34 million per annum
Regulatory Process
- Prima facie order issued on 07.08.2025 proposing grant of licence
- Public notice published in The Hindu and Jansatta on 14.08.2025 inviting objections
- No objections or suggestions were received from stakeholders
- Central Transmission Utility of India Limited (CTUIL) supported grant of licence (letter dated 11.04.2025)
Final Order
The Central Electricity Regulatory Commission (CERC) has granted a 25-year transmission licence to POWERGRID Chitradurga Bellary Transmission Limited, subject to the following conditions:
- Compliance with CERC Transmission Licence Regulations, 2024, Grid Code and CEA standards
- No engagement in electricity trading business
- Payment of licence fee as per CERC rules
- Non-discriminatory open access to be provided to users
- Execution of the project strictly as per Transmission Service Agreement (TSA) and Scheduled COD
- EPC contract to be awarded through competitive bidding
- CTUIL and CEA to monitor project execution and report any lapses to CERC
- Adherence to Standards of Performance and Open Access Regulations
Outcome
Petition No. 468/TL/2025 has been allowed.
CERC has approved a 25-year transmission licence enabling POWERGRID’s subsidiary to develop major transmission infrastructure at Davanagere, Chitradurga and Bellary, facilitating large-scale renewable energy evacuation from Karnataka’s Renewable Energy Zones.
