CERC Allows Petition Of Karur Transmission Ltd

Highlights :

Adani Transmission Limited was declared as the successful bidder and was issued Letter of Intent on December 22, 2021.

CERC Allows Petition Of Karur Transmission Ltd

The Central Electricity Regulatory Commission (CERC) allowed on May 17 the petition of Karur Transmission Ltd that the transmission charges for the project should be adopted because it was selected through a competitive bidding process.

Karur Transmission Ltd had moved the CERC to examine whether the process as per provisions of the guidelines has been followed in the present case for arriving at the lowest levelized transmission charges and for selection of the successful bidder.

Led by I. S. Jha, the 3-judges bench ordered, “it emerges that selection of the successful bidder and the discovery of the levelised tariff of the project has been carried out by the BPC through a transparent process of competitive bidding in accordance with the guidelines issued by the Ministry of Power”.

Besides, “Bid Evaluation Committee has certified that the process is in conformity with the Ministry of Power Guidelines. Adani Transmission Limited has emerged as the successful bidder after conclusion of e-Reverse auction with lowest levelized transmission charges of Rs.183.54 million per annum”, reads the order.

It all started with Ministry of Power notifying PFC Consulting Limited on 15.10.2019 for the purpose of selection of bidder as Transmission Service Provider to establish Transmission System for “evacuation of power from RE sources in Karur/Tiruppur Wind Energy Zone (Tamil Nadu) (2500 MW) and transmission system for providing connectivity to RE projects in Gujarat [Lakadia (2000 MW)]” through tariff based competitive bidding process.

The RfQs were received from the seven bidders. Subsequently, the bid was kept in abeyance following a direction from CEA. On 20.1.2021 and 28.1.2021, it was agreed to segregate the transmissions scheme into two phases/schemes. Due to revised scope of transmission scheme, a fresh bid process was resumed on 23.9.2021.

The RfP bids were received from three bidders, namely, Power Grid Corporations of India Limited, Sterlite Grid 6 Limited and Adani Transmission Limited which were opened online through MSTC portal in the presence of representative of the bidders on 22 November, 2021. Three bidders were qualified at RfP (Financial) stage. The initial price offers quoted by the three bidders are as under (In Millions) :

Power Grid Corporation of India Limited Rs 204.82 L-1
Sterlite Grid 6 Limited Rs 253.80 L-2
Adani Transmission Limited Rs 300.00 L-3

BEC recommended the above three bidders to participate in the e-reverse auction stage and to submit their final offers. The e-reverse auction was carried out at MSTC portal on 9.12.2021. The levelised transmission charges for each bidder (in ascending order) emerged as under:

Rank 1 Adani Transmission Limited Rs 183.54 L-1
Sterlite Grid 6 Limited Rs 184.01 L-2
Power Grid Corporation of India Limited Rs 187.79 L-3

Based on e-reverse bidding, BEC recommended on 16.12.2021 that Adani Transmission Limited with the lowest levelised transmission charges of Rs.183.54 million per annum as the successful bidder. The letter of Intent was issued by the BPC on 22.12.2021 to Adani Transmission Limited.

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