Central Electricity Regulatory Commission (CERC) has approved the transmission charges (tariff) associated with the interstate transmission system (ISTS) scheme being developed by Powergrid Bellary Davanagere Transmission, a TBCB subsidiary of Power Grid Corporation of India Ltd (PGCIL).
In a very recent order, CERC adopted and approved the annual transmission charges of Rs.1,300 million (Rs.130 crore) quoted by PGCIL in winning this scheme under the tariff-based competitive bidding (TBCB) mechanism.
PGCIL acquired Powergrid Bellary Davanagere Transmission Ltd, then known as Bellary Davanagere Transmission Ltd, from bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL), on February 12, 2026.
The underlying ISTS scheme is referred to as “Transmission system strengthening for integration of additional RE potential at Davanagere (0.25 GW) and Bellary (2.75 GW)” and is scheduled to commission by February 12, 2028 (24 months from date of SPV transfer).
No reverse auction
Based on their technical bids, four bidders – PGCIL, HG Infra Engineering Ltd, Resonia Ltd and Adani Energy Solutions Ltd – were qualified for opening of initial price bids. Based on their initial price bids, these four bidders were L1, L2, L3 and L4, in respective order.
PGCIL’s bid was seen to be aggressive given that the next-best (L2) bid was 26.2 per cent higher. The L3 and L4 bids were 43.5 per cent and 72 per cent higher, respectively, than the L1 bid.
None of the three bidders (L2, L3 and L4) participated in the electronic reverse auction (e-RA) process, ostensibly because there was little scope to match the L1 bid given the wide difference.
PGCIL’s bid of Rs.1,300 million was therefore declared as the winning bid.
Transmission licence
The adoption and approval of tariff is dependent on Powergrid Bellary Davanagere Transmission Ltd (PBDTL) securing transmission licence from CERC. Incidentally, CERC has granted interim transmission licence to PBDTL. The hearing for final transmission licence is scheduled for May 25, 2025. In its order granting interim transmission licence, CERC has directed the petitioner PBDTL to issue a public notice seeking objections/suggestions to the grant of transmission licence. Any such feedback needs to be placed before CERC on or before May 20, 2026.
Project background
For project background, read tndindia.com story dated February 14, 2026.
PGCIL’s ISTS-TBCB scorecard
In FY26 (April 1, 2025 to March 31, 2026), PGCIL formally acquired seven ISTS schemes under the TBCB route. The Central PSU led the ISTS-TBCB market in terms of number of schemes but ranked second, after Adani Energy Solutions Ltd, in terms of tariff-based market share. (Read exclusive tndindia.com report)
Also read: CERC grants transmission licence to SR-WR transmission scheme
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