Development of high-capacity transmission corridors-I: CERC okays 9 corridors worth Rs 58,061 cr

In a move that is expected to facilitate the implementation of the long-term open access regime in the country, the Central Electricity Regulatory Commission (CERC), on May 31, 2010, accorded regulatory approval to Power Grid Corporation of India Limited (PGCIL) to proceed with the execution of nine high capacity power transmission corridors (HCPTC), at an estimated total expense of Rs 58,061 crore, for evacuation of power from various generation projects being developed by independent power producers (IPP). In tandem, CERC has directed PGCIL to ensure that the execution of the transmission corridors is synchronized with the commissioning schedules of the power projects, so that the beneficiaries are not burdened with superfluous interest during construction (IDC). Further, the Commission has made it clear that transmission charges and burden-sharing between the beneficiaries of the transmission systems will be, eventually, determined in accordance with the applicable regulations on terms and conditions of tariff, as specified by the Commission from time to time.

 Granted under Regulation 24, read with Regulations 111 and 113, of CERC (Conduct of Business) Regulation, 1999, and the CERC (Open Access in inter-State Transmission) Regulations, 2004, this approval will help PGCIL to obtain the necessary investment sanction from its Board of Directors to develop these dedicated power evacuation corridors. These nine corridors will help in the wheeling of power from a total of 48 IPP plants, located mainly in the states of Orissa, Jharkhand, Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Tamil Nadu and Sikkim. 

 Meanwhile, the public sector power transmission firm has executed the requisite bulk power transmission agreements (BPTA) with most of the IPPs, for the smooth development of these dedicated networks. According to PGCIL, these BPTAs are necessary for it to dedicate investments for these HCPTCs, in the absence of confirmed beneficiaries that would procure power from the generating plants of the IPPs. Pertinently, as per the stipulations of each BPTA, IPPs are required to submit a bank guarantee (BG) worth 10% of the estimated total cost of the associated transmission systems, while when project operations start, additional BGs equivalent to six months of estimated charges have to be furnished by the IPPs. 

 Further, PGCIL has initiated various activities preliminary to the construction of the proposed transmission projects, like surveys, land identification for pooling systems and tendering activities towards the preparation of feasibility and detailed project reports for the projects.