Central Electricity Regulatory Commission (CERC) has adopted the annual transmission charge (tariff) associated with the Chitradurga-Bellary REZ interstate transmission system (ISTS) scheme in Karnataka.
The scheme is officially referred to as “Transmission scheme for integration of Davanagere/Chitradurga REZ and Bellary REZ in Karnataka” and was originally housed under project SPV “Chitradurga Bellary REZ Transmission Ltd,” a wholly-owned subsidiary of bid process coordinator PFC Consulting Ltd.
Power Grid Corporation of India Ltd (PGCIL) won this scheme under the tariff-based competitive bidding (TBCB) modality and officially acquired the project SPV on March 21, 2025. The SPV has since been renamed to “Powergrid Chitradurga Bellary REZ Ltd.”
Tariff
In a very recent order, CERC approved and adopted the annual transmission charge (tariff) of Rs.3958.34 million – the winning quote of PGCIL.
Bidding process
Based on the technical bids, five bidders – PGCIL, Dineshchandra R. Agrawal Infracon Pvt Ltd (DRAIPL), JSW Neo Energy Ltd, Resonia Ltd and Adani Energy Solutions Ltd (AESL) – were qualified for opening of initial price bids.
However, only the first four quoted above progressed to the e-reverse auction (e-RA) stage where discovery of the final price bid took place. PGCIL’s initial price bid stood at Rs.4669.80 million and the Central PSU was L1 based on even the initial price bids. During the 65 rounds in the e-RA routine, PGCIL downwardly revised its bid by over 15 per cent to end with a final winning bid of Rs.3958.34 million. Resonia was placed L2 at final stage.
Transmission licence
CERC’s approval and adoption of the tariff is subject to the petitioner “Powergrid Chitradurga Bellary REZ Ltd” securing transmission licence from CERC. On this count, the petitioner has already received interim transmission licence as per CERC’s order dated August 7, 2025. The matter for final licence is scheduled to come up for CERC hearing on August 26, 2025.
The project
With an estimated outlay of Rs.3,453 crore and a gestation period of 18 months, the Chitradurga-Bellary scheme seeks to create transmission system for evacuation of renewable energy from Chitradurga and Bellary renewable energy zones (REZ) in Karnataka. The scheme entails the construction of 360 ckm of lines and a significant 14,500 MVA of transformation capacity, which would include new 765/400kV pooling stations at Chitradurga and Bellary, apart from upgrade of the existing Tumkur substation to 765kV level.
As of end-July 2025, land acquisition for the two greenfield pooling stations was underway, a report by CEA said.
Also read: CERC adopts tariff of Ratle-Kiru transmission scheme
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